BECAUSE Larry SAYS SO
Despite best intentions, many companies have been slow to implement effective ESG initiatives. They’ve been too busy focusing on revenue, right? Amen. Profit makes the world go around.
However, revenue streams are at risk without seriously considering the implications of climate change, leadership diversity, biodiversity loss, living wages in the supply chain, employee satisfaction and many other issues often thought of as secondary to core business.
Larry Fink, CEO of BlackRock, the world’s largest investment firm (along with his counterparts at State Street and the UK’s Aviva) says this the old way of doing business is no longer viable. Investors will now hold corporate leadership accountable for developing and meeting ESG metrics.
Companies must view ESG issues as critically as their balance sheets - because in essence, their balance sheets now depend on it.
We can debate about whether it’s ethically right, or whose responsibility it is to save our planet…but in the end those arguments are moot. Companies must transparently manage ESG risks, because Larry says so.
Thank you Larry for pushing businesses to do better for people and planet. Love, us humans.
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Something you can start today:
Look at spending across your value chain to assess the areas that contribute positively to environmental and social sustainability, and those that have the potential for negative harm.
Something else long term:
Incorporate this value chain assessment at the development stage of each new strategy or product. Tie executive goals and compensation to ESG improvements as your company grows.