ESG And The Sustainable Economy Handbook – Operational Considerations

ESG FROM THE OPERATOR'S PERSPECTIVE

In recent years, businesses that demonstrate certain environmental, social, and governance (ESG) criteria have seen a pronounced uptick in interest from many investors, particularly from institutional investors who were in the vanguard of the ESG movement. This interest has manifested not only in higher stock prices on public markets, increased interest in private fundraising rounds, and competitive pricing in project finance, but also in ripple effects through supply chains, hiring, and other aspects of operations. So too do ESG criteria— and public announcements regarding investment decisions made by investors utilizing ESG criteria—increasingly impact a business's brand and consumer relations. In parallel with this trend, businesses around the world have independently created and implemented ESG-related policies in a variety of areas.