5 Reasons Why ESG Frameworks Fail (Assent)

The following article is from our partner Assent and features insights from Kathrine Nasteva of TBG Purpose:

“It’s increasingly common to see news coverage about corporate environmental, social, and governance (ESG) management and greenwashing, especially since consumer interest in sustainability is at an all-time high. Entire industries are racing to keep up with growing ESG requirements and preparing to address pending legislation. Over the past few years, we’ve seen companies band together to try to make sense of ESG and develop an industry-standard framework to sustainability reporting.

Despite the good intentions of industry work groups, not all approaches to ESG hold up to scrutiny: There are a number of reasons why some approaches are doomed from the start. A fundamental obstacle to sustainability programs is failing to sell executive leadership on their impacts and values. Another red flag is when an industry’s sustainability approach has too narrow a focus on the specific pressing issues affecting a select few member organizations. When industry groups develop standards from the “inside out,” without a broader look at global regulations, market pressures, investor expectations, and an eye towards transparency, awareness and measurable change, the broader membership is set up for failure.

The result is an ESG framework which doesn’t stand up to external due diligence, falling short of investor or buyer demands, or accidental greenwashing with major brand repercussions. These issues have been getting more coverage in the media, as consumers and regulators like…” (Click here to continue the article.)

EDITOR’S NOTE: TBG Purpose is a leading Sustainability/ESG partner for corporations, institutions and governments. TBG Purpose provides an integrated set of solutions and enables organizations to meet their Sustainability and ESG objectives in line with the SDGs and global reporting standards and frameworks. Get in touch with our team for a free TruePurpose Sustainability Assessment and get out your TruePurpose Score.