ESG: a useful tool or a waste of time?

This week we’re diving into the world of ESG. What’s behind this acronym, why businesses need it, and why there’s so much controversy around it❓

Let’s take a look at the myths we try to bust on a daily basis основе⤵️:

Myth 1: ESG = sustainability. Although the concepts are related, ESG is more of a tool to achieve sustainability rather than a synonym.
Myth 2: ESG is only about the environment. “Green” agenda is important, but ESG is much broader than that! It includes social responsibility and good corporate governance. (One client once referred to ESG as “greenpeace” – here is an indicator of misunderstanding).
Myth 3: ESG is a waste of money. On the contrary, a responsible business attracts investors, increases customer loyalty and improves reputation, which eventually brings profit, but more on that later!
Myth 4: ESG is “the corrupting influence of the decaying West”.
ESG is a trend set by the West, but reflects a global societal demand for systematic, ethical and responsible business conduct, regardless of geography.
Myth 5: ESG is difficult and expensive. Implementation of ESG practices can be flexible and phased. Companies choose their own priority areas of development based on their capabilities and goals.

So what is ESG in reality? 💭

ESG is an international guideline for responsible business conduct that includes three key areas: environment, social well-being and corporate governance.

N.B.: ESG is not a rigid set of rules, but a set of recommendations. Companies focus on those aspects that they find most important and material for them.