ESG: creating sustained value for a greener planet
Until now, the conversation about ESG has mainly been around metrics and reporting guidelines. While these are critical issues, the need of the hour is to focus on creating long-term and sustained value for all stakeholders. Big gears are cranking across the globe. Away from the ongoing tensions from the Ukraine-Russia conflict, regulators and investors are striving to better define the environmental, social and governance (ESG) phenomenon and implement matrices to ascertain the role of businesses in a society buffeted by existential challenges – climate change, pandemic, war, and social unrest, to name a few. On the other hand, financiers, especially private equity (PE) professionals, are under pressure from limited-partner investors to incorporate ESG goals into their strategies and businesses. A company’s ESG profile, as per some investors, can make or break a deal.