ESG isn't a one-day commitment.

Maria Halasz

Practice makes purpose: The four biggest ESG mistakes to avoid

Maria Halasz
4 minute Read

Sound environmental, social and governance (ESG) policies define how our companies interact with society and what kind of corporate citizens we are. ESG principles are integral parts of how we conduct business, what our social and environmental impact is and, underlying it all, whether we are accountable and transparent about it.

But why exactly is an ESG policy so important, and what are some of the common mistakes companies make in this area?

Why is an ESG policy so important?

Over the last few years it has become abundantly clear that we all have to act responsibly when it comes to the environment; whether it is global warming, pollution or industries’ effects on biodiversity, we can no longer opt out. Investors are increasingly scrutinising companies for their environmental impact, so being good corporate citizens is also good for business.

Social responsibility refers to how a company interacts with its own people, and what kind of impact it has on communities. Companies have been focusing on their ‘cultural hygiene’ such as diversity and equality when it comes to hiring or promoting employees. However, increasingly, how companies interact with the wider community is becoming a focal point for society and determining investment appetite.

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