In the innocent days of early 2020 investment research firm MSCI predicted that this would be the year that “ ESG storms the CFO’s office, elbowing its way onto their bottom line as financiers get creative with ways to bind ESG criteria to their terms of capital, introducing a plethora of corporate borrowers into the wide world of ESG ”. But is this still right? Should Boards still be focused on ESG or have the totally unprecedented events of 2020 left it behind as a worthy but essentially idealistic approach only achievable in more prosperous times? To recap, ESG is an acronym very familiar to those in the investment community – standing for Environmental, Social and Governance factors that socially conscious investors use to screen potential investments. Environmental and Governance cover fairly obvious ground, but Social? — this means looking at an employer’s impact on its workforce and the wider community through tell-tales such as its recor...
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