Moving Beyond ESG
The framework has its detractors. Here’s a new playbook for responsible business. by Robert G. Eccles
Summary.
It’s been a rough few years for ESG—the popular shorthand for measuring and managing a company’s environmental, social, and governance performance. In the United States the term has become a punching bag for both sides of the political aisle. For those on the left, ESG doesn’t go far enough in forcing business to address major societal challenges, particularly climate change. For those on the right, it represents an insidious attempt to make companies adopt a liberal agenda, thus distorting markets and free competition. And critics of all stripes have complained about greenwashing—the practice of overstating ESG efforts by companies and investors. This barrage of criticism has caused ESG to lose its luster for many executives. Some even engage in “greenhushing”—they no longer talk publicly about their ESG initiatives.