Environmental, Social Governance (ESG) is a standard that measures a company's impact on the environment, socially and how accountable and transparent they are.
ESG is not a scam, but the issue is that you can tell any story you want with data. Whilst public companies have shareholders and other stakeholders, the standards and transparency of the ESG process are internally led. Therefore, scepticism, both internal and external, is based on a lack of trust, especially when marketing and reality don't align.
ESG is a valuable approach when used effectively and not mired in organisational politics. However, the current state of play is a reporting rather than an impact focus. When there is resistance to change, the data source is attacked, and in the case of ESG, the reporting comes under question, which causes a distraction from the intent of the standard.
My niche of expertise is social and economic Sustainability in business and the supply chain.
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