Connect with us

Hi, what are you looking for?

ESG Insight

Business

ESG is not a fad but an urgent business priority, says IoD

Photo: Shutterstock

The Institute of Directors published today a policy paper, ‘ESG Priorities for UK Companies 2022’, which sets out a number of ESG priorities for UK companies and organisations.  

Environmental, social and governance considerations are increasingly important decision-making criteria for all types of organisations – not only as a means of winning the trust of stakeholders but also as barometers of effective business management. 

The IoD provides a checklist of ESG priorities which are worthy of boardroom discussion in 2022, organised across the following key themes: 

  • Stakeholders and business purpose
  • Sustainability 
  • Inclusion and Diversity 
  • Governance 
  • Executive remuneration 

The report’s author and IoD Director of Policy and Corporate Governance, Dr Roger Barker, said:  “A strong ESG profile is attractive to potential investors, lenders, employees and customers, and helps build the brand of the organisation.  

“Weak ESG performance is a red flag.”

Dr Roger Barker

“Conversely, weak ESG performance is a red flag. It could indicate that the company’s leadership is not well aligned with the interests of wider society – bringing its longer-term sustainability into question. 

“Although a focus on ESG is emerging as a mainstream business priority, there remains a body of opinion which argues that it comes ‘at the expense of focusing on the fundamentals of the business’.

“Such an attitude is increasingly at odds with the demands of younger customers and employees – who expect companies to stand for something with a positive social impact,” Barker concluded.

The full IoD Policy Paper – ‘ESG Priorities for UK Companies 2022’ – can be downloadedhere.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Finance

"A vital step to consolidate the patchwork of voluntary guidance around climate change disclosures into one single set of norms"

Sticky Post

Banks are increasingly vying to establish their ESG credentials in a very competitive marketplace, in the wake of the COP26 climate talks and as they look...

Business

"The proportion of formally structured and standardised ESG data is relatively low at this stage..."

Finance

Carbon accounting software-as-a-service (SaaS) provider Persefoni has raised $101 million in a landmark Series B funding round that brought in some of the biggest...

Copyright © ESG Insight, 2021.