To maintain a so-called “social licence” to operate, most organizations now need to demonstrate a strong commitment to achieving environmental, social and governance targets. The catchall term includes a range of societal challenges, from climate change to pay equity to diversity and inclusion to cybersecurity.
Mr. Samek says these efforts are further complicated by how commitments are made. Rather than considering the steps organizations can take to realistically reach benchmarks, he says many sets lofty goals – like committing to achieving carbon neutrality, or net-zero emissions, by a certain date – before determining how those goals will be achieved.
The third major assumption is around the ability to execute in a timely manner. As more companies seek to achieve ESG targets, Mr. Samek says the required labour and equipment will become scarcer, potentially driving up costs. “Technology is huge and is how almost every challenge and gap right now gets addressed,” he says. “I think in the future there are going to be many available solutions and tools that will make the process easier.”
“We thought at first that we were going to be a tool for big business, and what we found is that it’s really small businesses and start-ups that are having the biggest challenges,” he says. “One is just knowing what’s appropriate for your size.” The other major challenge for smaller organizations is they often rely on suppliers and third-party providers to run certain aspects of their operations. That means that it can often be impossible to know, for example, the resources required to run virtual meetings, their social-media management software or their e-mail provider.
Because it’s not reality
ESG is the mechanism by which absolute authoritarian control by governments will be achieved, and condemn citizens to permanent servitude.