Alejandro Berros Ruiz’s Post

What does it mean to be a responsible business? A truly responsible business aligns its purpose with the needs of its stakeholders while ensuring that sustainable development remains central to its value creation. For instance, a company committed to sustainability wouldn’t merely produce ESG scores and reports to appease stakeholders; it would integrate sustainable practices into its operations. If the core activities of a business undermine sustainability, then presenting impressive ESG scores or sustainability reports is just misleading.

At the core of the ESG debate is the fundamental question of the role of the corporation in society: What does it mean to be a responsible business? https://lnkd.in/dAti8T7v

In the latest Harvard Business Review, Robert Eccles, a leading expert in #ESG and a pioneer in #integratedreporting, published "Moving Beyond ESG." His article provides a thought-provoking look at the current ESG landscape. While I don’t agree with everything, his call for broader dialogue is valuable. Key takes: • #Impact is inherently complex and hard to measure. • Companies might underperform on ESG metrics but still have a #positiveimpact. • #Regulation is vital to address and mitigate negative social and environmental externalities. Eccles highlights the need for candid reporting, but transparency alone isn't enough. Without double materiality, reports often miss the bigger picture. The absence of a #doublemateriality requirement by International Sustainability Standards Board (ISSB) narrows the scope of disclosures, and there’s often a disconnect between what’s reported and actual impact. Reporting should be a means for real, impactful change, not the end goal in itself.

In light of ESG and mandatory reporting, Why do companies need to be "responsible"? I think it's because a corporation should represent the collective best of us. From HBR: "At the core of the ESG debate is the fundamental question of the role of the corporation in society: What does it mean to be a responsible business?" "...corporate executives need to be clear and forthright about how their companies are responsible businesses that are addressing the needs of shareholders and stakeholders—and about what negative externalities they cannot address without changes in the regulatory environment. " https://lnkd.in/g6faWr2v

At the core of the ESG debate is the fundamental question of the role of the corporation in society: What does it mean to be a responsible business?

A nice overview of the controversies surrounding ESG and some good examples and suggestions by Robert G. Eccles in the Harvard Business Review. My takeaways: -Have a clear purpose. -Assess/manage material risks to value creation. -Assess/manage negative impacts created by your firm regardless of their weighting in ESG frameworks and address them without hurting value. -Provide input to developing a productive regulatory environment. -Use standard frameworks (eg GRI, ISSB) to candidly report your progress. -Proactively reach out to stakeholders to have measurable, fact-based conversations (drop the rhetoric and politics). #esg #sustainability #commercialrealestate #sustainable #future https://lnkd.in/gFyVzuzT

Very related to my last article ‘About the ESG Trap’ (https://lnkd.in/dfJCD9Ca), a recent article by Robert Eccles for HBR reinforces the need to address #ESG differently, adding some interesting insights on the politics and business implications around it. The most powerful phrases in my opinion: 💡 “To be a responsible #business, a company must have plans to reduce negative #externalities. Every company knows what these are.” ⚖️ “Ultimately, however, #regulation is the primary way in which negative externalities are mitigated. New laws can suddenly make them financially material.” 🌎 “I suspect (and hope) that the acronym ESG will eventually fade entirely. Rather than talking about ESG, corporate executives need to be clear and forthright about how their companies are #responsible businesses that are addressing the needs of shareholders and stakeholders” Great piece of work, and will definitely stay tuned on further releases!

https://lnkd.in/djbp4bgH 📣 Criticism and misinformation have caused ESG to lose its luster among many executives, as per Robert Eccles in his article called “Moving Beyond ESG” published in the hashtag #HarvardBusinessReview. 👉 Whether the criticism comes from the left or the right of the political spectrum, ESG is insufficient for addressing major societal issues such as climate change or it pushes liberal agenda thus distorting markets and free competition. ⚖ Single or double materiality (*) ? The debate is also in the way assessment should be done ✴ In this context, it is necessary to clarify what a responsible business means (Clear / Candid / Constructive): -  Clear about your purpose: highlighting material ESG issues that directly affect value creation, have plans to reduce negative externalities and set targets -  Candid in Your Sustainability Reporting: the role of the regulation is key but an harmonization of all the standards is needed to ease the reporting burden -  Constructive in Your Shareholder and Stakeholder Engagements: be clear on how the company is addressing their needs 🥇 With these strategies implemented, the company is able to operate a business transformation, connect financial with ESG performance and, hopefully, get a competitive advantage. (*) Single materiality (also called financial materiality) attempts to quantify ESG issues that are important for shareholder value creation—that is, those issues that pose risks for a company. It is the dominant variant of ESG in use today. Double materiality attempts to measure a company’s impact as well—that is, the positive and negative externalities it creates that make the world a better or worse place but don’t directly affect corporate financial performance Valérie Raoul-Desprez Valérie Labouré-Hirsch Jacques-Antoine Schaefer Constance Gest Herve Pernat Christian DIDIER Damien Abreu Pierre Dubernet #ESG #responsiblebusiness #businesstransformation #financialperformance #ESGperformance #singlemateriality #doublemateriality #sustainability #reporting

"At the core of the ESG debate is the fundamental question of the role of the corporation in society: What does it mean to be a responsible business?" Robert Eccles put together a thought-provoking article that frames some of the toughest issues in the #ESG discussion. It highlights the crucial need to examine the role of companies in society, the balance between shareholder and stakeholder capitalism, and the approach to managing negative externalities. Robert Eccles pragmatically offers three strategies: 1) Be Clear About Your Purpose 2) Be Candid in Your Sustainability Reporting 3) Be Constructive in Your Shareholder and Stakeholder Engagements #sustainability #responsiblebusiness

This article provides a well balanced perspective on ESG and the challenges impacting both Corporates and society. It also offers a concise summary comparing single versus double materiality. Do you think the acronym ESG will eventually phase out? I do and in its place I believe we will see deeper conversations on sustainability and what it means for the environment and society. https://lnkd.in/d9shpqTv