Fundamentals ESG: ESG and Companies

The great industries of the world are moved by human beings and some with power, with a certain freedom to choose, and it is there where the growing technological development cannot and should not prevail for the acquisition, overflowing with money, faster ways of doing things. Well said Hans Jonas "Responsibility has become the fundamental imperative in modern civilization, and it should be an unavoidable criterion to assess and evaluate human actions, including, in a special way, development activities."

ESG has allowed different industries to be sustainable over time due to its triple behavior, without neglecting financial aspects. When companies are aware of good management in everything that concerns ESG, work is facilitated and allows those directly involved, such as their employees and investors, to enjoy a healthy environment, favoring different aspects such as the reduction of occupational accident rate, financial risks, qualified talent, an important business culture. The implementation of good corporate practices will always be a benefit for organizations, especially when thinking about ESG

There are many examples of good and bad industries, it is necessary to follow the example of good practices in the market, such as Starbucks.

Re: ESG and Companies

by Alexandra Donose - Wednesday, 2 August 2023, 5:30 PM

In Romania, in 2023, companies are still not very transparent in ESG related reports, especially compared to other companies from Europe.

The reports are not detailed and there are some companies that do not provide such information at all.

Re: ESG and Companies

by Ee Beng Tan - Monday, 7 August 2023, 5:13 PM

This is a valid Concern Alexandra ... Soon in the ESG Tools and Applications, we will explore why Sustainability Reporting may not be the best indicator if a company is sustainable or otherwise.

Re: ESG and Companies

by Muhammad Harith Zamsaimi - Thursday, 3 August 2023, 3:41 PM

The growing needs for companies to restructure their management and decision-making culture to be in-line with ESG framework will help transform them to be a great company. This could also attract more investments as investors will view them as a company that prioritize stakeholders (shareholders, employees, communities, environment) and not just the shareholders.

As of 2023, Malaysia's goverment expecially the Finance Minister already converse on ESG as an indicator that Malaysia will also drive towards contributing to the UN's SDG 2030 goal. This will become a beacon to all organizations in the country to start planning towards the transformation of becoming ESG-driven companies.

Re: ESG and Companies

by Bhagyaraj K - Thursday, 3 August 2023, 4:19 PM

Implementing ESG across all industries will help businesses thrive over the long term by protecting the environment, building a better work-life balance for employees, and ensuring the financial health of the business.

Re: ESG and Companies

by Juan Felipe Pinto Castelblanco - Sunday, 6 August 2023, 6:25 PM

Unquestionably, human agency and responsible decision-making are crucial for the development of industries. The claim made by Hans Jonas emphasizes the importance of making wise decisions in the face of technological advancement.

The environmental, social, and governance aspects of sustainability are all taken into account by ESG standards. Adopting these standards helps to promote a safe work environment, reduce risks, and strengthen business culture.

Re: ESG and Companies

by Ee Beng Tan - Monday, 7 August 2023, 5:11 PM

Well written Marizabel. ESG is part of how business operate and it is not something that is good to have.

Re: ESG and Companies

by Karen Ximena Serrato - Tuesday, 8 August 2023, 1:50 AM

I agree with you.

I think that companies from countries such as Colombia or Brasil should give more importance to ESG. Aslo the government needs to do stronger policies and create a new models to improve ESG.

Re: ESG and Companies

by Laura Sofia Llanos - Tuesday, 8 August 2023, 5:30 AM

Good ESG management in companies is too important, not only for the planet and humanity, but also because it has been confirmed by studies such as Refinitiv Lipper's that companies that integrate ESG management are more successful and grow faster than those that do not.

In addition to profit success, companies that employ good practices in their businesses are more likely to have employees who do their jobs well, a brand that is recognized for having a good work environment, and a company that is well spoken of.

An example of a company with good ESG management is Patagoniaa leading outdoor Clothing & Gear brand that is synonymous with Ethical supply chain, Sustainability and Environmentally friendly company. According to an article published by Cascade, It is estimated that Patagonia has a minimum 10% of annual year growth between 2015 to 2019, with some sources claimed that their sales quadrupled over the past decade and have surpassed $1 billion.

Re: ESG and Companies

by Luz Ángela Libreros - Tuesday, 8 August 2023, 12:32 PM

Companies based on ESG practices have proven all the several benefits on their people productivity, customers loyalty, better access to financial services and cost saving and therefore on their profits. However, I would like to emphasize to see far above all these benefits and it would lead us to focus on purpose: the ESG company's purpose and the personal purpose of its leaders and shareholders. Both have something in common, focus on who they are. As the Boston Consulting Group said "Organisations will not be judged for quality and prices, but for who they are in relation with their customers, their employees and society". A business with purpose to be a force to do good demands leaders with a personal purpose that match with a calling for service and seeking solutions for all the environmental and social problems that many communities and as society face everyday with a regressive time account. Now it is imperative to implement ESG practices in the organisations and specially towards the effects of the reshaped world by the global pandemic as Richard Hartung said (CEO @ Transcarta).

Re: ESG and Companies

by Yudhi Pradhana - Tuesday, 24 October 2023, 5:03 PM

Thank you for the reply.

Agree that the pinnacle of strong ESG performance of a Company will be reflected in its purpose. We can see this in Patagonia and Blackrock whose leaders have a strong sense of purpose without neglecting their responsibility as good business leaders.