Following a period of significant growth, almost 25% of investment in 2019 (Forbes) can be attributed to Economic Social & Governance (ESG) opportunities. While terminology varies between sustainable investing, impact investing and responsible investing, ESG is ultimately the guiding principle. In short, ESG is the new Corporate & Social Responsibility (CSR) principle.
ESG is not related solely to an investment decision, but rather encapsulates the business practices, awareness of, and crucially, the outward projection of a business or organisation of its commitment to and delivery on ESG promises.
At its core, how an organisation takes steps to identify areas of improvement with respect to ESG and more importantly, how it demonstrates progress in this area is critically important. This may take a cultural shift, but with more and more investors and other key stakeholders demanding a commitment to ESG, it will continue to develop as a beacon for all businesses.
To successfully drive the awareness, identification and implementation of ESG, organisations will need to adapt. In many cases, hiring the right people, not just with strong commercial and technical acumen, but with a real grasp of and commitment to ESG will be pivotal.
This not only applies to “investment” positions, but right across all organisations, from Finance, to Compliance, Supply Chain to Operations.
At FK International, we can help! We have over 20 years’ experience and an unparallel track record in successfully partnering with our clients. As your requirements change, we will be to the forefront, helping our partners to future proof their businesses. We are passionate about the ESG agenda – by partnering with us, we are all helping to benefit the environment, our climate and our society.
Chief Operating Officer