Ted Dhillon is the CEO and founder of FigBytes, an ESG insight platform.
Environmental, social, governance (ESG) is trending—so much so that a record $649 billion was poured into ESG-focused funds worldwide in 2021.
With stakeholders looking to put money into companies that have sustainability plans in place, more businesses are jumping on the ESG bandwagon. But are these companies making a difference, or are they greenwashing or “purpose-washing,” making grand long-term commitments with no concrete short- or medium-term plans? Now, the SEC in America and the Federal Government in Canada are making moves toward mandating that publicly traded companies disclose their climate-related risks.
An effective ESG strategy can be boiled down to these three elements: setting goals, tracking your progress and taking a holistic approach.
1. Set goals for your industry, not others.
The most frustrating thing about ESG is that there is no