With sustainabilitySustainabilityMeeting today’s needs without compromising the ability of future generations to meet their needs, by working towards the attainment of the UN SDGs. read more becoming an increasingly significant consideration for discerning investors, being able to differentiate between true sustainabilitySustainabilityMeeting today’s needs without compromising the ability of future generations to meet their needs, by working towards the attainment of the UN SDGs. read more and merely a green veneer – or, ‘greenwashing’ – will become increasingly important as time goes on.
That is why Tribe Impact Capital wants investors to know the risks of relying on ESGEnvironmental, Social and Governance (ESG)Environmental, Social and Governance (ESG) investing looks at the operations of a company and the potential environmental, social and governance risks associated with the way they operate. read more (Environmental, Social and Governance), and how a promising acronym might just be another way of pulling wool over consumers’ eyes.
According to the Tribe analysis, ESG has become a ‘powerful framework’ for businesses to consider their operational risks by using a shared language, and to provide shareholders and lenders with a gauge of the extent to which companies identify and mitigate against these risks.
However, despite encouraging steps in the right direction, and introducing sustainabilitySustainabilityMeeting today’s needs without compromising the ability of future generations to meet their needs, by working towards the attainment of the UN SDGs. read more vocabulary into corporate discourse, a major problem with ESG data sources is that the consumers are led to believe assertions of ‘sustainability’, ‘responsibility’ and ‘impact’ often provided by a singular piece of publicly available information.
