Is ESG a fleeting fad or a lasting force for positive change?

13 February 2023

Green investment, sustainability, Corporate Social Responsibility (CSR), Environmental, Social and Governance (ESG), Climate risk management; the list of buzzwords is endless. Over the past 40 to 50 years the conversation around these issues has developed both in terms of the focus on them and the compliance requirements around them.

Why should your business be proactive with the latest thinking and requirements? Should it simply be a case of ticking the boxes and regulatory game playing? At the International School of ESG we strongly believe that this isn’t just a compliance exercise. Businesses and individuals should be aware of these matters for many reasons. Let’s just focus on the Environment for a moment. It’s incontrovertible that human beings have, and are causing, damage to the world in which we live. Whether it be bio-diversity or the destruction of the natural world, the impact is huge and lasting. The UN estimates that over 200 million people will be displaced around the world due to rising temperatures and the impact, such as rising sea levels. Sadly, those impacted the most are often those who are least able to minimise the impact and also often are those who have contributed less to the problem compared to more developed nations.

Social issues are a real problem for many sectors of our community. From gender pay-gap issues, to outright discrimination and bullying in the workplace, the world is often hugely unfair and downright uneven in the rewards that we as a society share. Understanding these issues is essential if we are to create a fairer society for everyone. We all have a stake in the future and unless we all play our part in generating positive social dynamics we cannot expect the system to self-correct.

Underpinning all of this is governance. The governance of risk relating to financial crime facilitation, for example. Do we want a society where human-trafficking gangs, narcotics kingpins and other criminals can easily launder the proceeds of their crimes? We’d like to think the answer is no, and yet, there are still far too many instances of lax controls in these issues. The German government has recently introduced legislation requiring companies there to carry out checks of their supply chain to reduce the likelihood of human slavery and other heinous practices. Supply chain risk management and third part risk management aren’t just ‘compliance matters’ and shouldn’t be dealt with as a box-checking activity. Sadly, it often is.

The International School of ESG exists to provoke and challenge us all to move forward our thinking in the role of us all to influence our industries, societies and communities for positive change. Education is transformative and we hope you want to join us on the journey.