Fundamentals ESG: Why ESG criteria is a emerging topic

It is difficult to question the role of the private sector in sustainable development, since its involvement in the social and economic life of countries and in the use of natural resources is more than evident. For this reason, civil society, especially the millennial generation, is increasingly calling for companies to be more transparent and accountable.

That´s why there are three guidelines that unify how investors and other interest groups measure their affinity with a company and decide whether to engage with it or not.

Re: Why ESG criteria is a emerging topic

by Ee Beng Tan - Tuesday, 19 September 2023, 8:50 AM

I agree. We can only manage things that we measure. On another extreme, different bodies created different ESG Standards for different purpose. This created confusion to ESG Practitioners. I suppose this is unavoidable as different standard have a different interest.

Re: Why ESG criteria is a emerging topic

by samrawit Lisanu - Friday, 3 January 2025, 10:31 PM

There is a growing interest from investors in sustainable and responsible investments. many investors believe that companies with strong ESG practices are better positioned for long term success and are less risky.

Re: Why ESG criteria is a emerging topic

by Nahom Yonas Gebremariam - Monday, 20 January 2025, 7:13 PM

ESG (Environmental, Social, and Governance) criteria are becoming increasingly important in investment and corporate decision-making as the value of sustainable practices in driving long-term value, managing risks, and meeting consumer preferences is recognized. Investors are increasingly looking for companies that prioritize ESG factors as a way to boost both profitability and ethical considerations, reflecting changes in societal values and regulatory environments. Concerns about climate change, social equity, and corporate accountability contribute to this trend.

Re: Why ESG criteria is a emerging topic

by Yudhi Pradhana - Monday, 27 January 2025, 11:29 AM

Hi Samrawit and Nahom.
Thank you.

Sometimes, even short-term ESG programs can deliver value in the short term—provided the ESG program touches on material aspects of the company’s ESG challenges and opportunities.

Re: Why ESG criteria is a emerging topic

by Mulugeta Gashaw - Wednesday, 19 February 2025, 4:45 PM

ESG criteria have become an emerging topic due to growing global awareness of environmental, social, and governance challenges. As climate change, social inequalities, and corporate governance failures continue to impact communities and economies, both consumers and investors are increasingly prioritizing companies that demonstrate responsible practices. The rise of sustainable investing, regulatory pressures, and consumer demand for ethically driven businesses have further accelerated this trend. Moreover, the long-term value of companies is now closely tied to their ESG performance, prompting organizations to integrate these criteria into their strategies for better risk management, competitive advantage, and positive societal impact.