The great ESG revolution: it is time we walk the talk
From a tick-box to a business imperative, ESG is a crucial topic in boardrooms, impacting business decisions.
From a tick-box to a business imperative, ESG is a crucial topic in boardrooms, impacting business decisions. The boards are putting ESG at the heart of their strategy to build a risk mitigation strategy while driving innovation and creating new growth opportunities. EY brought together a panel of renowned business leaders from different sectors for an insightful discussion on 'Accelerating the ESG revolution. ' In addition to discussing the opportunities and challenges for companies as they imbibe the ESG agenda, the experts touched upon the various aspects of ESG, including suggestions on how companies can become responsible organizations and contribute to building a better future for all stakeholders.
Quoting Rabindranath Tagore, Pankaj said, "You cannot cross the sea merely by standing and staring at the water." The panel discussion started on an interesting note with Nadir Godrej reciting a poem which captured all aspects of ESG in a beautiful way. While some companies already have ESG goals and roadmap in place, others are looking to follow suit. ESG regulations are at different levels of implementation in various geographies. There is a rising need for the ESG agenda to be made an integral part of business strategy.
Commenting on the surge of ESG reporting, Julie Teigland said, "In the past 12 months, most companies have met their ESG compliance requirements. Now they understand that sustainability is not just the icing on the cake. It must be baked into their strategy and supported at the board level." Regulators, customers, and other stakeholders are influencing business decisions with ESG considerations in their mind. Technology: an enabler of sustainability Technology is one of the most significant enablers of sustainability, and several companies are leveraging it to drive their ESG agenda. Young investors are the driving force behind the ESG revolution Capital markets are starting to factor in ESG considerations in investments. "In the past two years, ESG equity funds have grown almost 200%. Young investors are looking at not only returns but also the impact on the planet's future. They are also driving a change in investing behavior," said Navneet Munot.
Source : EY