ESG is a full form of Environmental Social and Corporate Governance. It is seen as the three foundational pillars of any business in the modern day and age. It is used as a marker of ethical and social responsibility by investors and entrepreneurs in judging the long-term financial viability and health of a business. Over the course of the last few decades, the concern for businesses across the globe has been to respond to the growing pressures of environmental accountability, and healthy governance models. Consumers and investors have grown conscious of the risks and damages posed by a business to the environment, and demand a basic and fair memorandum on these vital subjects.
The climate crisis today, is the number one environmental consideration for assessing the future financial performance of companies – what is known as return and risk. Investors are notorious for not wanting to hedge their bets on what could be a potentially sinking ship in the long term. Not far behind are treatment of workers, use (or misuse) of animals in the testing and manufacture process, percentage of untreated waste let out into the environment, etc.
Modern fashion brands that depend entirely on squeezing the most out of cheap labour or using animal hide in their clothing, or pharmaceuticals using animals as testing subjects, are a couple of examples of the excesses of unchecked corporate greed and cruelty.
Another phenomenon that has occurred in the last few decades has been big brands moving into potentially lower-class neighbourhoods. These brands begin the process of gentrification, i.e., trying to price out the working-class residents, by pushing up property rates and driving out small and local businesses.
Today, these same brands are conscious that not having a relationship with the local community or not giving back in some manner, can hurt the brand value and business permanently, causing investors to start pulling out. Hence, we at Utopiic believe every business must have the perfect ESG score. Take our Positive Assessment to get your score and get Positive Certified.
(India CSR)
