IT's Key Role In Planting ESG Effort
InformationWeek, Wednesday, January 3th, 2024
Environmental, social and governance (ESG) is an emerging area of focus for companies that could loom large in the future. How can CIOs plan for this today?
First mentioned in a 2006 United Nations' report, ESG (environmental, social, and governance) is an area of corporate performance and responsibility that has been monitored by investment firms for two decades. Yet there is still no consensus on just what an ESG-compliant company looks like, or what tangibles investors will get out of ESG compliance.
In a November 2022 Borsa Istanbul Review research paper, ESG was examined for corporate profitability and investment firm value. Researchers concluded that environmental ESG work did not significantly add to firm value, but that collective work in all ESG categories did. Researchers stated, 'These findings suggest that investing in high ESG performance promises financial return for the firm in terms of both value and profitability.'