Published on: 30 November -0001
The last few years has seen a boom in ESG-labeled investment products, which will likely be worth an astonishing $41 trillion by the end of this year. That’s almost one-third of globally managed funds. Of more than 2,000 academic studies, according to management consultants McKinsey, around 70% found a positive correlation between ESG scores and financial returns – whether measured by equity returns, profitability, or valuation multiples. Still, the concept of ESG is under scrutiny. According to the United Nations, the critics of ESG have a point.
The confluence of crises, dominated by COVID-19, climate change, and conflicts, are creating spin-off impacts on food and nutrition, health, education, the environment, and peace and security, affecting all the Sustainable Development Goals (SDGs). Actions do not match the ambition and pace needed to achieve the UN’s SDGs by 2030. To rescue the SDGs and deliver meaningful progress for people and the planet by 2030 the UN is introducing a new enhanced global reporting system. It will enable members of the UNGC to assess themselves against their peers and learn from each other. The UNGC will be able to learn from the feedback it gets to assess and track by industry, sector, and principle area.
The new report delivers a concrete means for CMOs who want to drive Humanized Growth and create value for all stakeholders. It helps to adopt measurable goals and targets and as such enables CMOs and their companies to demonstrate tangible progress on the commitments to the SDGs.
Inspired by Sanda Ojiambo, assistant secretary-general, executive director, and CEO of the UN Global Compact, guest on IRGs Humanizing Growth series
