ESG Will Improve, With Cynicism, Critics & Critique
BW Businessworld|October 07, 2023
THE CONCEPT OF Environmental, Social, and Governance (ESG) has sparked a whirlwind of discussions and debates. Critics have emerged, and their voices have grown louder. So what next? It (ESG) is not only valid but desperately needed in our evolving financial landscape. Why?
Srinath Sridharan & Shailesh Haribhakti
ESG Will Improve, With Cynicism, Critics & Critique

The formalisation of the ESG concept is a relatively recent development, with measurement and framework adoption taking place over just a few years. Reflecting on this, one cannot help but wonder: if the ESG values weren’t already enshrined in the broader fabric of human societies, we might have faced even more profound levels of anarchy and social unrest.

The common criticism revolves around the diverse metrics used to measure the E, S, and G factors. Detractors argue that these metrics are distinct and cater to different needs. Well, isn’t that precisely the point? Companies are multifaceted entities, and a one-size-fits-all approach simply won’t suffice. The ESG concept acknowledges this diversity and encourages a holistic assessment of corporate behaviour. The absence of consensus on what defines a “good” or “bad” company only underscores the complexity of the business world, making ESG all the more essential.

Critics also raise concerns about companies “gaming” the ESG scoring system. But should we throw out the entire hope on ESG, just because of potential loopholes in the frameworks? Credit rating agencies faced similar issues in the past, yet we didn’t abandon credit ratings altogether. Instead, we improved and refined the system and ESG deserves the same treatment.

Another accusation is that investors have overhyped ESG, likening it to the past century’s financial innovations. Yes, there has been hype in the past without meaningful regulatory role, but that doesn’t diminish ESG’s legitimacy. We have seen overhyped technologies and financial products before, but that didn’t invalidate the internet or social media or the concept of business diversification. So ESG, like any other tool, needs responsible usage.

هذه القصة مأخوذة من طبعة October 07, 2023 من BW Businessworld.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة October 07, 2023 من BW Businessworld.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BW BUSINESSWORLD مشاهدة الكل
MEMORIES & IMPRESSIONS
BW Businessworld

MEMORIES & IMPRESSIONS

Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.

time-read
3 mins  |
October 19, 2024
The Robotaxi Market
BW Businessworld

The Robotaxi Market

The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.

time-read
1 min  |
October 19, 2024
And the Nobel Prize Goes to AI
BW Businessworld

And the Nobel Prize Goes to AI

The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.

time-read
1 min  |
October 19, 2024
Ola Electrified
BW Businessworld

Ola Electrified

Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.

time-read
1 min  |
October 19, 2024
Sharp Slide in Industrial Output on Eve of Deepavali
BW Businessworld

Sharp Slide in Industrial Output on Eve of Deepavali

India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.

time-read
1 min  |
October 19, 2024
Heralding the Solar Era with Sustainable Electrification
BW Businessworld

Heralding the Solar Era with Sustainable Electrification

RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more

time-read
2 mins  |
October 19, 2024
A WELL-GREASED MACHINE
BW Businessworld

A WELL-GREASED MACHINE

The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar

time-read
4 mins  |
October 19, 2024
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
BW Businessworld

DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH

For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh

time-read
7 mins  |
October 19, 2024
Disruption Ahead: Beyond Organisation Charts and Structures
BW Businessworld

Disruption Ahead: Beyond Organisation Charts and Structures

ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.

time-read
3 mins  |
October 19, 2024
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
BW Businessworld

Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment

We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.

time-read
2 mins  |
October 19, 2024