SBI Blog ESG No Longer Just a Buzzword as Regulation Creates Emerging Supply Chain Risk

With the UN's Intergovernmental Panel on Climate Change (IPCC) sounding a "code red" alarm on the future of humanity, the topic of environmental, social and corporate governance (ESG) is more current than ever.Various surveys have demonstrated that consumers want companies to incorporate ESG practices and studies link higher ESG scores with lower cost of capital. Investors are also hopping on the train, as shareholder resolutions pushing for increased ESG efforts reached a record high in 2021. What's more, the COVID pandemic has accelerated ESG adoption as global conglomerates, such as Carrier, start linking their ESG goals to executive compensation packages. All in all, a commitment to ESG appears to be a no-brainer for any company looking to improve its image and sales.