Rose Stuckey Kirk’s Post

➡️It’s been a rough few years for #ESG—the popular shorthand for #measuring and #managing a #company’s #environmental, #social, and #governanceperformance. Critics on the political left believe #ESG is #insufficient for #addressing #major #societalissues such as #climatechange; critics on the right say ESG pushes a liberal agenda. The barrage of criticism has caused ESG to lose its luster among many executives. Yet the need for a transparent way to connect a company’s financial performance with its ESG performance remains. ➡️It’s time, says Oxford professor Robert G. Eccles, to take stock of ESG and chart a path forward. He acknowledges the #complexchallenges that still need to be resolved. Chief among them is whether to use single materiality (which focuses on shareholder value) or double materiality (which includes societal impact). ➡️In this article #Eccles recommends a #pragmaticapproach for #corporateleaders: ✔️clearly define corporate purpose, ✔️improve transparency in ESG reporting, and ✔️engage stakeholders constructively. These #strategies will #help #companies manage #ESGpressures by focusing on #materialissues that affect #shareholdervalue while also acknowledging and addressing broader societal impacts. 👉https://lnkd.in/emtjsqhh

Excellent piece by Robert G. Eccles for the Harvard Business Review. Robert concisely interrogates the controversial 'ESG' debate in business, demonstrating that while both sides may share differing views on the subject, at its core, the conflict comes down to one fundamental question: What does it mean to be a responsible business?   The article provides three actionable strategies companies can use to navigate a clear path towards corporate responsibility: defining purpose with precision, embracing transparency in sustainability reporting to combat greenwashing, and engaging constructively with all stakeholders.   A must-read for organisations seeking practical guidance on approaching sustainability in today's complex business landscape. To read more ESG and sustainability related insights, you can also visit our webpage here: https://lnkd.in/ejhcTRxD #ESG #sustainability #corporateresponsibility

❔ What does it mean to be a responsible business? What is the role of a corporation in society? The great debate on the topic continues. It seems that we've made a lot of progress, but as it was relevant and contentious almost 54 years ago with well-known Friedman’s article in NYT, it remains to this day. Who is responsible for building a sustainable, better future (and present)? What is the role of the government, business, NGOs, financial institutions and civil society? Is it enough to follow mandatory ESG reporting? Or in today's reality: * Single materiality or double materiality in assessing ESG performance? * Sustainable Investment or Impact Investing? * Pro-ESG or anti-ESG? 👀🔎 Great summary of current situation on the global market in the article from Sep-Oct 2024 issue of Harvard Business Review Magazine. And 3 strategies from Robert Eccles for ensuring that a company is a responsible business: 1) Be clear about your purpose. 2) Be candid in your sustainability reporting. 3) Be constructive in your shareholder and stakeholder engagement. Something to reflect on and choose/confirm your position. However, there is one statement that I like the most (and which can be applied to any modern conflict, problem and confrontation) – 💡 ‘Ignoring them (your opponents), will not make them go away” 💎 Instead, be proactive in your engagement and constructive communication with them, your shareholders, industry associations, politicians, and NGOs. #ResponsibleBusiness #Sustainability #ESG #BeyondESG #PositiveImpact

Great read on what it means to be a responsible business, and how to move past the (often polarised and partisan) ESG debate. In the end, there needs to be a recognition that "sustainability issues are vital for value creation". Businesses need to have "a clear understanding of what the company can and cannot do to address societal and environmental challenges while providing long-term returns for its shareholders" [...], and to engage in "constructive engagement and candid reporting".

This is an interesting article which aligns with the next GoodCorporations debate lunch at the House of Lords on the 3rd of October. #GCHoLdebates

Found interesting this article about why we should rethink ESG – Harvard Business Review by Robert G. Eccles Eccles offers insight on how corporate leaders can move beyond ESG and focus on long-term value creation: *ESG is stuck in political battles, often losing focus on key material issues. *Companies must address the single vs. double materiality dilemma. *A clear corporate purpose linked to shareholder value is essential. *Transparent ESG reporting helps restore trust and reduce risks. *Engaging stakeholders across political divides is crucial for success. Moving beyond ESG means giving it stronger meaning and commitment. https://lnkd.in/ecYnQvyy

ESG has faced increasing scrutiny in recent years, becoming a lightning rod for criticism from both ends of the political spectrum. Critics on the left argue that ESG metrics fall short in tackling significant societal challenges like climate change, viewing them as insufficient or too vague to drive real change. On the other hand, critics on the right see ESG as a vehicle for advancing a liberal agenda, often questioning its relevance to traditional business objectives. This barrage of criticism has led to a decline in enthusiasm for ESG among many executives, who may now view it as a contentious or even divisive framework. However, despite the challenges, the importance of a transparent, consistent method to link a company's financial performance with its ESG initiatives remains crucial. Companies that navigate this complex landscape successfully can still leverage ESG to enhance long-term value, foster trust with stakeholders, and contribute meaningfully to broader societal goals. #ESG #ClimateChange #PerformanceSustainability #Transparency #Goals

☘ ESG may have faced some criticism in recent years, but the need for a clear link between a company’s financial performance and its #ESG efforts remains crucial. In a recent Harvard Business Review article, Robert Eccles tackles the ongoing challenges in ESG, such as the debate between single and double materiality, i.e. focusing only on shareholder value or also including broader societal impact. He offers a pragmatic approach for corporate leaders: ✔ Clearly define your corporate purpose. ✔ Enhance transparency in ESG reporting. ✔ Engage stakeholders in a meaningful way. By adopting these strategies, companies can navigate ESG pressures and innovate more effectively, focusing on material issues to create a positive impact on the business, planet, and society. 🌎 #sustainableinnovation #sustainability https://lnkd.in/eG4h2VWs

Why We Should Evolve, Not Abandon, ESG" Robert Eccles’s recent article "Moving Beyond ESG" explores how the term ESG has become a lightning rod, facing critiques from both ends of the political spectrum. Yet while Eccles suggests we need a new framework, I believe ESG remains essential...it just needs refinement to address today’s realities. Diverse Perspectives Drive Impact ESG isn’t just about compliance; it’s about building resilient organizations. Diverse voices bring unique insights, enabling companies to tackle sustainability and equity issues more effectively. This depth is lost when we focus narrowly on shareholder value alone. Transparency Is Non-Negotiable Greenwashing has been a problem, but abandoning ESG isn’t the answer. Instead, we need universal reporting standards for clear, measurable progress. Transparency builds accountability, ensuring companies are genuine in their impact efforts. Balancing Profit with Purpose Responsible business means delivering value for both shareholders and society. A well-rounded ESG approach enables this balance, generating returns without compromising ethical and environmental priorities. As ESG debates intensify, let’s focus on enhancing it, not discarding it. ESG provides a foundation for assessing corporate impact, and with greater diversity, transparency, and balance, it can meet the evolving role corporations must play in society. https://lnkd.in/eStGVmdX

Very insightful article on ESG. In response to the challenge posed, I wholeheartedly agree that businesses must approach environmental, social, and governance (ESG) issues with a methodical and nonpartisan mindset. It's essential to recognize that the impact of corporate decisions extends beyond profits; it touches the communities, employees, and ecosystems involved. Instead of framing ESG as a divisive issue, we should see it as an opportunity for collaboration. By focusing on shared goals—such as sustainability, social equity, and ethical governance—we can foster an environment where businesses thrive while simultaneously addressing the pressing needs of all stakeholders. Moreover, responsible companies that prioritize both shareholders and stakeholders pave the way for a new standard in corporate behavior. Embracing ESG principles can lead to innovative solutions that benefit everyone involved, rather than being mired in the culture wars. It's crucial that we, as a society, support this shift in focus. By encouraging open dialogue and collaboration between businesses, communities, and regulators, we can move past the polarization of ESG discussions, establishing a future where ethical practices are the norm, not the exception. This is not merely an aspiration but a necessary evolution in how we view the role of businesses in our world today.