As we have reported, starting in Fiscal 2024, the EU will demand sustainability reports and audits for companies operating there.
The US SEC is finalizing its own reporting requirements.
By the end of 2023, it is expected that more than half the world’s economies will be requiring some level of reporting on sustainability.
This brings us to the elephant in the room – the political debate over ESG.
- First, as a refresher, sustainability is the E (ie, environment) of ESG.
- We DO NOT recommend a company initially pursue an ESG program. We recommend starting with sustainability certification, then carbon neutrality certification, then, a few years later, consider ESG and Net Zero. This will deliver the highest ROI and benefit to your company.
- At the corporate operating level (ie, on Main Street), sustainability is tremendously beneficial to a company.
- Further, at the operational level, ESG works and companies with ESG programs are out-performing their peers that do not have ESG programs.
- However, Wall Street saw an opportunity and tried to package and sell ESG Funds to the public. The questions associated with these funds are – A) How are companies evaluated/judged in order to be part of a fund? And, B) Should fund managers be allowed to invest the money of their clients to support environmental and social causes?
- The debate over these two points has become political, as this video explains.
At the end of the day, politics aside, the planet needs your help and by helping the planet, you will also be helping your company grow faster. This master class explains the benefits to you, the steps you should take, and what to look for in a program. Contact us with questions.