World events and trends - especially with respect to supply chains and resources - are undergoing major shifts. Environmental, social, and governance (ESG) issues are at a tipping point in terms of their influence on shareholder value.
This column briefly traces the history of socially responsible investing and corporate disclosure. The current dynamics are truly fascinating. Major impacts will be felt with certainty and the issues are becoming far more expensive.
But the flurry of attention being paid to ESG issues can be distracting and misleading. You should not allow yourself to get caught up in the rhetoric of sustainability. Now is not the time to allow 'group think' to rule. You need to critically examine the facts, understand the timelines of future scenarios, and calculate the specific impacts that may affect your organization.