Benevity’s Post

Does ESG need a Rebrand? 🌍 In this article, Klara K., Head of Big Issue Impact Advisory, highlights the current challenges in ESG, particularly around social impact measurement. Many organisations continue to treat ESG as a reputational tool, while Klara advocates for a focus shift toward verified, long-term impact—especially on people's lives and communities. 🚨 It's time to rethink how we approach 'S' in ESG by moving from conceptual narratives to measurable, real-life data, emphasising the need for comparable metrics, consistent monitoring, and inclusive solutions that reflect the true needs of communities. #ESG #SocialImpact #Sustainability #ImpactInvesting #BigIssueInvest #Leadership https://lnkd.in/edzUJBAC

Reflecting on the Evolution of ESG: A Journey Towards Sustainability 🌍 As we navigate the complexities of modern business, the significance of Environmental, Social, and Governance (ESG) criteria in decision-making has become increasingly apparent. Let's take a moment to journey through the history of ESG and its profound impact on corporate landscapes worldwide. 🌿 **Early Roots:** ESG principles have their roots in socially responsible investing (SRI), dating back to the 18th century when religious groups abstained from investing in "sinful" industries. However, it wasn't until the 20th century that ESG factors began to gain traction in mainstream investing. 📈 **Rise of Corporate Social Responsibility (CSR):** The late 20th century witnessed a surge in CSR initiatives, driven by growing awareness of environmental degradation, labor rights, and ethical governance. Companies started integrating social and environmental concerns into their business strategies, recognizing the importance of sustainable practices beyond profit maximization. 📚 **Formalization and Standardization:** The early 21st century saw the formalization of ESG metrics and reporting standards. Organizations such as the Global Reporting Initiative (GRI) and the United Nations Principles for Responsible Investment (UN PRI) played pivotal roles in establishing frameworks for measuring and disclosing ESG performance. 📈 **Mainstream Integration:** In recent years, ESG considerations have become integral to investment decisions, with institutional investors, asset managers, and stakeholders increasingly demanding transparency and accountability from corporations. Companies are recognizing that sustainable practices not only mitigate risks but also drive long-term value creation. 🚀 **Future Trends:** Looking ahead, the trajectory of ESG is poised for continued growth and evolution. Emerging trends such as impact investing, stakeholder capitalism, and sustainable development goals (SDGs) are reshaping the ESG landscape, emphasizing the interconnectedness of business success and societal well-being. As we celebrate the rich history of ESG, let's reaffirm our commitment to building a more sustainable and equitable future. Together, we can leverage the power of business as a force for positive change. #ESG #Sustainability #CorporateResponsibility #ImpactInvesting #StakeholderCapitalism #SaveEarth #Startup ##CommunityEngagement #DiversityandInclusion #ESGReporting #ESGIntegration #SustainableDevelopmentGoals #EthicalLeadership #ESGStandards #CorporateEthics #CleanEnergy #ESGTrends

Via Utility Dive: " In the wake of increased scrutiny, ESG leaders aren’t backing down.: Amid a polarized political landscape, companies are beginning to view sustainability and corporate social responsibility through the same strategic lens. " #Energy #Utility #Utilities

"While there is a long history of individuals, communities, churches, nonprofits, and governments pressuring business to adhere to societal expectations, the movement really took off in the early 2000s, bolstered by the influential 2004 United Nations 'Who Cares Wins' report. The ESG movement coalesced around the idea that by managing environmental, social, and governance factors that were material to the business — that is, those relevant to a company’s competitiveness and reputation that could affect stock prices — corporate leaders could increase financial performance. It was never clear exactly why E, S, and G were the right concepts to bring together with (apparently) equal weighting or how they were connected to each other. This awkward bundle would later prove to be a liability to the ESG movement as it went mainstream in the subsequent two decades. These two decades also saw the rise of impact investing, with impact funds seeking to provide financing to ventures making social impact even if it meant lower-than-market returns. The 'impact economy' grew alongside ESG until the lines blurred between them, so much so that many of our incoming MBA students expect that doing what is right will always be the profit-maximizing choice. [...]  ESG encompasses too many varied factors, with some viewing it as merely good business practice to thoughtfully scan risks and opportunities, and others believing it to be an important cure to every form of corporate malfeasance. Some are convinced that ESG performance enhances profitability, while others think it erodes profitability. ESG has almost become a kind of Rorschach test, where people’s varying interpretations seem rooted in their views about capitalism itself. This confusion made it difficult to standardize how to measure ESG and easy for critics to cherry pick weak metrics and for companies to shift the goal posts to avoid accountability, as we have seen with the recent spate of companies quietly retreating from unmet emissions targets. ESG’s big tent became a big problem. We believe that more progress will be achieved if E, S, and G were unbundled into their own separate categories. [...] ESG is at an inflection point. Like a long list of ancestral acronyms, including CSR and SRI, it has come to represent a broad and inchoate aspiration for what business should be doing beyond maximizing shareholder value. These ideals have sometimes been pitched as win-wins that will increase profits, and at other times as advocating that companies engage in tradeoffs to generate positive but below-market returns in order to improve their social impact. With ESG advocates on the defensive, business leaders need a new roadmap to determine which factors to incorporate into their business strategies and operations — and their political advocacy — and how they will communicate this to their stakeholders."

#ESG initiatives are proving their worth! According to KPMG, 70% of CEOs now say their ESG efforts are paying off financially, up from 37% the previous year. Investing in community & social impact isn't a trend; it's a strategic move toward long-term success. #ESGStrategy #SustainableGrowth #SocialImpact #CEOInsights #ProfitWithPurpose #CorporateResponsibility #BusinessInsights #ESGImpact #CSR #CEO

Sharing my article published by InDaily on Reframing the narrative on ESG: forget 'social', think 'society'. Our model at Community Corporate is about measuring the 'feel good', 'financial good' and 'future good' for corporate champions to drive sustainable success and impact. Love to know what you think! Welcome a battle of ideas so we can get this right! We can't keep ignoring the 'S' in ESG! https://lnkd.in/gnHGpmE5

ESG is not longer fancy 😝 In the summer of 2023, Larry Fink, CEO of BlackRock, announced that the company would no longer use the term "ESG" (environmental, social, and governance) in its investment approach, marking a significant shift in the business world. While ESG had grown in prominence over two decades, a backlash in the U.S. against "woke" investing signaled what many believed was the decline of ESG. Business leaders and academics have long debated the effectiveness of ESG, often linking it with corporate social responsibility (CSR) and socially responsible investing (SRI). The movement was originally driven by investors seeking to avoid companies with negative social impacts, such as heavy polluters or makers of harmful products, and those looking to push for change through shareholder pressure. However, as ESG evolved, it became entangled with impact investing, blurring the lines between doing good for business and society. One of the core challenges for ESG lies in its bundling of diverse factors—environmental, social, and governance—into a single framework. This lack of clarity made it difficult to measure and easy for critics to target. As the movement expanded, the concept of “double materiality” further complicated ESG by adding social impact considerations alongside financial materiality. This broad scope contributed to its eventual backlash. Despite ESG's challenges, some aspects, particularly environmental factors, continue to hold traction. There is consensus on the importance of managing risks related to climate change, which has led to the rise of "transition investing." Meanwhile, governance topics are becoming absorbed into broader regulatory frameworks, while social factors remain the most contentious, especially around issues like diversity. Moving forward, corporate leaders are urged to focus on sustainability issues that directly impact the bottom line and address their firms' societal impacts through collaboration and advocacy. As ESG reaches an inflection point, companies that can balance financial and social priorities will lead in this new era of business. https://lnkd.in/d_ENbPW7

Reframing the narrative on ESG: forget ‘Social’, think ‘Society’! In our pursuit of sustainable business practices, it is imperative to recognize that people are the fundamental element in everything we undertake. The 'S' dimension of ESG often does not receive the attention it deserves. Thank you Carmen Garcia AM for this insightful reframing!

CSR, ESG, or Impact-led? How businesses are shaping the future! In today’s rapidly evolving world, businesses are being called upon to do more than just make a profit—they’re expected to make a positive impact on society and the environment. Here’s a quick breakdown of the three primary ways companies are responding: Corporate Social Responsibility (CSR): CSR is about giving back to society. From community projects to sustainable sourcing, it’s where companies voluntarily contribute to social good. Think of it as a company’s way of saying, “We care!” Environmental, Social, and Governance (ESG): ESG is the gold standard for sustainable investing. It offers measurable metrics across environment, social, and governance categories, helping investors gauge a company’s ethical impact. ESG shows that sustainability isn’t just a one-time project—it’s a core business strategy. Impact-led Approach: An impact-led business makes purpose its core mission—beyond profits. This approach seeks to solve critical issues in areas like health, poverty, and the environment, ensuring that the company’s success is measured by the real change it creates. Each approach has its strengths, but together they represent a shift toward responsible and impactful business practices. When companies align purpose with profit, they not only build trust but also drive genuine change. #Sustainability #CSR #ESG #ImpactDriven #CorporateResponsibility #Leadership #FutureofBusiness

This article reveals fascinating insights into the rise of Chief Impact Officers (CIOs). It’s not just a trendy title – it’s an investor-driven movement demanding reimagined organisational structures to truly embed ESG #sustainability within companies. And the reason? While regulations like EU’s Sustainable Finance Disclosure Regulation (SFDR) and the US Securities and Exchange Commission’s ESG disclosure rules hold companies accountable, it’s investors and shareholders pushing for dedicated impact leadership. They understand the long-term value proposition of #ESG – and they’re demanding action. But for more company stakeholders to play such influential roles, we must equip them with the knowledge and tools to advocate for social and environmental accountability. That’s what AVPN is here for. Our network, activities, and, of course, the upcoming Global Conference, are your launchpads for impact innovation. Join us, learn, connect, and empower investors to become powerful catalysts for responsible business practices. Remember, a sustainable future depends on informed stakeholders driving positive change from within companies.