The Importance of ESG
ESG = Environmental, Social and Governance
The COVID-19 crisis will mark a turning point in our history as
businesses, governments and consumers become more vigilant on
Environmental, Social and Governance (ESG) issues and
their global consequences.
In the past few months, the effects of the COVID-19 pandemic have been swift and profound. Billions of people have complied with stay-at-home orders, and governments worldwide have injected trillions of dollars into their economies to support both struggling businesses and infinite individuals who have found themselves unemployed.
While conversations about complying with Environmental, Social and Governance (ESG) criteria certainly occurred before the pandemic, the scale and severity of the global health crisis have further highlighted the fact that economic activity can no longer be limited to merely the pursuit of financial profit. Going forward, it is to be hoped that no one will want to go back to how things were pre-COVID-19, neither companies, states, consumers nor investors.
In recent months, various companies have shifted to produce ventilators, face coverings, and cleaning supplies, as they consider their contributions to the greater good of society. The “S” in ESG stands out now, more than ever. Company expectations continue to evolve with a greater emphasis on social commitment and the place they wish to occupy to serve society’s general interests. It is no longer a question of being limited to the simple creation of value, but of looking at the way in which this value is created. This rapid development can be explained both by public awareness and the new requirements of customers, investors and authorities.
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