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The Struggle to Define ESG

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Environmental, social, and governance (ESG) is becoming more and more important in our world today, and underlying data is vital in giving it meaning. Acting as a source of checks and balances, ESG needs a long-term view that promises the existence and sustainability of fundamental organizations over time; partnerships and stakeholder engagement are also required. Nevertheless, ESG is complex and not easily measured. Written for companies seeking to attract ESG investments and become compliant with ESG regulatory requirements, this text discusses the "what" and "why" of the matter, diving into understanding ESG, how disregarding ESG means risk, inconsistent metrics and lack of clarity, and what companies can do to be ESG-investable and ESG-compliant. This book also looks at how emerging technologies can help organize underlying ESG data and add transparency to provide accountability and a holistic view of ESG's impact. Chapter 2 looks at several key terms for sustainability and what each concept means. These concepts include corporate social responsibility (CSR), the triple bottom line, a circular economy, socially responsible investing (SRI), and environmental, social, and governance (ESG). All these terms can vary widely in approach, focus, and stakeholder perspective that they may represent. The second half of the chapter discusses essential factors for implementing ESG. To implement ESG effectively, all stakeholders need to be active participants. An example with the Catholic church is given. Disregarding ESG comes with risks-for the company and the general population. Multiple examples of organizations using information and communication technologies for development (ICT4D) are described. Leadership with integrity is also essential in implementing ESG.
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