Wanted: Government Leadership on ESG

This week’s APPG on Environment, Social and Governance’s report ‘Defining ESG’ really resonated.

APPGs (and the people who run then) often come in for criticism (some of it justified), but this week’s report was an important contribution to a neglected debate: what do we really mean by ESG? 

Now, full disclosure: I spend a lot of time talking to people about ESG, and I even get paid for it sometimes. 

But the lack of consistency in how we apply standards and make disclosures is limiting our ability to make the progress we need to on some of the most pressing issues we face as a planet.

And what is the result? We’re letting irresponsible business off the hook. You can’t be accountable for something that is so poorly defined.

I can think of a well-known investment bank, which shall remain nameless, that has made bold claims about its ESG credentials, whilst at the same time continuing to asset strip and work its people to the bone and benefit from the spoils of human rights abuses in global supply chains.

So, I think we are at a point where Government leadership is necessary.

It’s not a perfect solution. The trouble with frameworks, regulation whichever term you choose, is that sometimes it becomes the pinnacle to which we aspire rather than a compliance floor to meet and surpass. But we need progress not perfection.

There is an opportunity to undercut the ESG culture wars and address the cynicism some people feel about the whole agenda.

 One piece of advice I always give to clients, is never to oversell your ESG credentials. Far better to acknowledge that you are on a journey and that there is room for growth.

There is some great work happening across UK industries. Those leading the way, deserve the credit and for everyone else …well… call it a development opportunity.