At the Reuters Responsible Business USA 2023 event in New York last month, we joined sustainability practitioners from some of the world’s leading companies including Colgate, Mastercard, Ford, Enel, Intel, and more to discuss how they are seeking to embed sustainability across their enterprises. In the words of one panelist, sustainability is no longer a vertical, but instead it is the hub of the business. From investing in renewable energy and reducing waste to promoting ethical and equitable supply chain practices, companies are prioritizing ESG in order to create a positive impact on the environment and communities and build trust with all of their stakeholders.

With the possible adoption of new SEC regulations and what we are learning from the EU Sustainable Finance Disclosure Regulations, we believe that ESG is set to become an even more critical component of corporate strategy. Sustainability leaders who want to be well positioned for long-term success and corporate strategy should see ESG as an opportunity for creating value, not simply complying with reporting requirements. Savvy leaders will:

  1. Treat ESG as a business and social impact opportunity, and not just a risk to be managed
  2. Help usher in a just transition for all by focusing on people who are most impacted, beyond technical solutions
  3. Engage with the “S” as robustly as they commit to the “E”
  4. Integrate sustainability firm-wide through thoughtful operationalization

Read the full article about sustainability leaders by Chirlie Felix and Lolita Castrique-Meier at FSG.