Blogue - Top 5 des raisons pour lesquelles la gouvernance lenvironnement et la responsabilite sociale ESG sont maintenant un enjeu cle

Top 5 Reasons Why Governance, Environment, and Social Responsibility (ESG) Are Now a Key Issue

The themes of governance, environment, and social responsibility have been discussed for many years. However, they have never been as publicized as they are today. Why this sudden interest? Advances in scientific knowledge about climate change are partly responsible for this visibility, but it’s not the only reason. Here are five key factors that make governance, environment, and social responsibility (ESG) key issues now.

1. The Arrival of Millennials

Millennials are entering the workforce and are more aware of social and environmental issues than previous generations. They are more interested in the impact they have and demand that employers align their values with theirs and take a stand. They are also more likely to require the integration of environmental, social, and governance issues in their investments.

2. Social Media

Social media has not only accelerated the speed at which information spreads but also allowed everyone to have a wide audience. Supply chain scandals involving child labor or unfair working conditions have forced companies to improve their monitoring processes. Social media also facilitates the organization of large-scale protests or boycotts, which can quickly gain momentum. Greater collective awareness results in more collective actions.

3. Investors

Investors realize that governance, environment, and social responsibility are becoming material risks that will impact their ability to create long-term value. They are requesting information to assess these risks and demanding more data about future strategies. It is no longer sufficient to report profit; a robust ESG strategy is now necessary to reassure investors.

4. Societal Norms Are Evolving

The continuous dissemination of information on the importance of diversity and inclusion, wage gaps, climate change, and other ESG issues is helping to transform societal norms. What was once accepted as the norm is no longer today.

Anecdote

When I started working, I was often called to travel to visit suppliers. During these visits, I saw images of women in bikinis in workplaces, people smoking cigarettes while working, etc. Can you imagine this situation today?

5. Pressure from Governments and Institutions

The evolution of societal norms regarding ESG is accompanied by an increase in regulation by governments and institutions. These guidelines require companies to deepen their engagement with stakeholders, whether they are employees, customers, or the communities in which they operate. They also demand greater transparency in communicating ESG issues to the public. Consider the Canadian Net-Zero Emissions Accountability Act or the new ISO 42001 standard for artificial intelligence; the message is clear: ESG issues in business can no longer be neglected.