Articles on Environmental, Social and Governance

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If shareholders want corporations to take climate change and social responsibility seriously, firms should pay their leaders for results on those dimensions. (Unsplash+)

The push to standardize ESG scores could make corporate greenwashing easier, not harder

Tying executive pay to ESG metrics is now standard practice at most large companies. But new research finds that when the scoring methodology becomes predictable, it becomes easier to game.
Businesses can freely use the SDG framework, logos and colours in their communications without any external validation, meaning they can misuse them without needing to take them seriously. (Shutterstock)

Businesses are leveraging the UN Sustainable Development Goals to gain political influence

Canada has fallen behind in global SDG progress rankings. To reverse this, Canada needs better mechanisms to hold companies accountable and ensure the SDGs are actually being adhered to.
There have been growing calls for more corporate disclosure and accountability in the face of income inequality, governance failures and the mismanagement of natural resources. (Shutterstock)

When it comes to sustainability reporting, it depends on how serious companies are about making change

Many firms now report how they are doing along economic, environmental and social lines in what is called a sustainability report. But how effective are they, really?
More than three-quarters of large, publicly traded companies in Europe and North America now use environmental, social and corporate governance metrics when determining executive incentive compensation. (Shutterstock)

ESG bonuses are on the rise: Are they improving sustainability or just increasing executive wealth?

While incentives can enhance the environmental, social and corporate governance performance of businesses, there is a risk of executives manipulating these performance metrics to obtain bonuses.
Student-Managed Investment Funds provide students with experience managing real investment portfolios. But new research shows only. a small minority of funds include environmental, social and governance (ESG) factors in their mandates. (Shutterstock)

Business schools must step up on sustainable investing education

As we confront pressing social and environmental challenges, business schools must play a big role in building momentum for sustainable investing and ignore partisan, anti-ESG sniping.
Environmental, social and governance investing, a form of responsible investing that aligns financial returns with positive environmental and social ones, has gained exponential popularity in recent years. (Shutterstock)

How environmental, social and governance (ESG) investing controversies can impact fossil fuels

The criticisms faced by ESG projects are indicative of the growing polarization in the future profitability of the fossil fuel sector.
ESG rankings and lists aren’t often entirely reliable for consumers or investors wanting to make decisions on companies they buy from or invest in. Appolinary Kalashnikova/Unsplash

Sustainability rankings don’t always identify sustainable companies

Some companies rank high on some lists that measure environmental, social and governance (ESG) initiatives, and rank near the bottom on other lists. Which rankings should we trust?
As consumers, we can change our lifestyle, our investments and demand change from our governments. Together — along with accountants — we can get there. (Charl Folscher/Unsplash)

What is sustainability accounting? What does ESG mean? We have answers

To achieve environmental sustainability, we need strong corporate standards that are quantifiably enforced, accountants trained to accurately measure sustainability — and we must all play a role.

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