The Silent U in ESG

A few months ago, Elon Musk was fired up because Tesla was booted from the ESG index, while Exxon remained.

I commented at the time that his complaint was like my youngest arguing she doesn't need to shower because her sister didn't clean her room.

Not every criteria is relevant for every industry. For ESG to adequately create impact AND profit - it has to be integrated into the business model and long-term strategies that include knowing:
 

*Who your organization serves and why

*How you're measuring the impact you want to make

*How effectively you create an opportunity for those in your ecosystem to thrive

*How you will reduce risk through ethical decision making

*How you'll communicate the truth of your organization.

ESG funds are a great starting point, but to really understand the intersection of profit and impact, we have to consider all three areas independently, with a focus on (U)nderstanding our impacts as they actually are - not as we hope they will be. 

Otherwise, we risk making the needs of our stakeholders subservient to the perspectives of only one person.

And that’s not an ESG strategy - it’s an EGO strategy, Elon.