Zombie Myths of ESG

From TikTok videos on ESG (Environmental, Social and Governance) investment to perspectives on emerging legislation, there's a lot of bad information out there about ESG.

But a few common myths keep popping up, so it might be helpful to arm you with useful information.  

Myth #1: Businesses must report on a wide variety of topics, even if they're irrelevant to their business.

Truth: Guidelines suggest various topics and measures to address the most common ESG risks, but your leadership team determines which items are most relevant to your business.

Myth #2:  Only publicly traded companies need an ESG report.

Truth: Even privately held companies face scrutiny from procurement officers, communities, employees and customers. Understanding the needs and preferences of each stakeholder group is a competitive opportunity waiting to be harnessed.

Myth #3: ESG standards are political stances hidden as business activities.

Truth: ESG standards are designed by leaders within an industry to identify key risks such as employee needs, risks to the value chain, regulatory alignment, infrastructure/ community needs, and customer expectations. Political contributions are the only recommended political disclosure (but again, are optional, not required.) 

ESG can be an incredible way to assess risks, create cross-functional collaboration and innovate products and services that call your teams to a greater purpose. 

If you ever need help cutting through the noise and understanding how this work can be used in your business, I am always – 

Here for you,

Dora