ESG investment, governance, and trust—an effective equation.
USD 100 trillion is the estimated amount of global sustainable investments allocated until the end of 2022, according to the Global Risks Report 2020 from the World Economic Forum (WEF). Also, according to the WEF, along with the increase in ESG-based investments, there is a growing involvement of stakeholder capitalism, shareholder activism, and an increased appetite of companies to use ESG targets and metrics. These factors reshape the global financial and economic landscape and motivate organizations to embrace ESG causes.
The challenge for CEOs and Boards is to build consistent trust with their stakeholders and measure it over time: more investors’ trust, more investment.