Why Environmental, Social, and Governance is Important?
After a devastating pandemic year, investors now understand sustainability is not just about handling environmental risks, but also other unforeseen factors. The creation of a resilience ESG infrastructure is now of the paramount essence.
In the recent past, investors have witnessed an elevated ESG and consumer attention towards the impact of businesses and corporations. This scenario has steered them to go for companies with strong ESG proportion to safeguard their interests when investing.
According to the US Securities and Exchange Commission (SEC), ESG issues will be their top priority and will play a great role when they are making their decisions. SEC postulated that the line between profitability and good doing is fading fast, and that’s why there is a need for efforts to pursue public interests while maximizing the bottom line in the US.
Elsewhere, European Green Deal is targeting to help all member states achieve a net-zero emissions by 2050. They also want to achieve circular economies by then.