Per this article, gone are the days of sustainability being a public relations supplement to annual reports.
The First Wave – CSR
- The foundation of sustainability reporting goes back to CSR (corporate social responsibility). It was a way for companies to do some good. But those efforts were detached from the company’s core operations.
The Second Wave – ESG
- About 20 years ago, as companies started to realize risk-management was linked to environmental and social practices, CSR evolved to ESG and sustainability became aligned with a company’s corporate strategy.
- The upside was sustainability was now sitting at the board table and performance data was gathered, stored and reviewed.
- The downside came when the financial markets tried to make money off ESG by promoting and selling ESG funds that were not truly ESG funds.
The Third Wave – Regulations
- We are now shifting from voluntary to mandatory reporting.
- Non-compliance will have negative consequences.
- Consumer demand is pulling governments forward and rewarding companies that act.
If you recognize the path we are on, this post explains what we believe a sustainability program should include. This master class explains why you should consider it.
If this makes sense to you, contact us.