Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Stock image: Planting a green earth. Credit: Blue Planet Studio/Adobe Stock

In recent years, corporations have started investing more heavily in environmental, social, and corporate governance (ESG) initiatives and have become increasingly focused on employing ESG standards in their operations.

ESG efforts align with the modern trend of corporate boards adopting a philosophy of “corporate responsibility,” in which they consider the long-term impact of their operations and strive to advance the interests of a wider variety of stakeholders. Though often associated with preventing climate change and reducing carbon emissions, corporate ESG concerns actually are broader in scope and include focus on sustainability, diversity, equality, employee welfare, and cybersecurity protocol.

Companies are investing in ESG initiatives not only to strengthen their public image and respond to stakeholder priorities, but also because a demonstrated commitment to ESG initiatives is becoming a critical element of doing business in the modern age. For example, many lending firms and institutional investors are shifting their investments toward companies that meet their ESG standards, and financiers may even withhold financing for certain projects that fail to meet those standards. As a result, failing to develop strong ESG initiatives may result in limited access to capital and lost business opportunities.

See also:

Dig Deeper


Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.