We believe 2021 will be the year of “less discussion, more action,” as ESG (Environmental, Social, Governance) topics that have long been in the consciousness of CEOs and Boards will be brought “front and center” as a result of calls for corporate accountability from investors, consumers, governments, regulators, and other key stakeholder groups.
More specifically, the top seven ESG trends we anticipate to dominate the sustainability agenda in the year ahead include:
- Increasing pressure from Institutional Investors to incorporate Sustainability/ ESG into corporate agendas
- Linking senior executive compensation to ESG performance against formalized and publicly stated commitments, goals, and targets
- Rethinking of diversity, equity, and inclusion (DEI) policies, programs, and commitments to be more systemic and impact-driven in nature
- Leveraging “corporate purpose” as a strategy to drive competitive advantage and business resiliency – transitioning the discussion of an organization’s purpose from passive to pervasive
- Even greater emphasis on monetizing sustainability performance, investments, and impact within corporate finance and accounting
- Adopting a “dynamic” approach to ESG risk management that integrates big data and artificial intelligence to better assess risks and opportunities
- Growing recognition of climate risk as “material to corporate valuation” by asset managers, investors, and transaction specialists
Position your organization to capitalize on these trends and translate your ESG intentions into action. Contact AccountAbility to jumpstart your 2021 sustainability strategy development process.