Idea in Brief
The Problem
Despite heightened attention to environmental, social, and governance (ESG) issues, surprisingly few companies are making meaningful progress in delivering on their commitments.
The Root Cause
Most companies are not integrating ESG factors into internal strategy and operational decisions and are providing investors with little to no explanation of how improvements in ESG performance affect corporate earnings.
The Solution
Identify the ESG issues material to your business. Factor in ESG effects when making strategic, financial, and operational decisions. Collaborate with stakeholders, redesign organizational roles, and communicate with investors about your new approach.