Why is ESG so Important in Today's World?

Chances are that you're reading this article while sitting in a room. It's likely that you're surrounded by many different objects, including machines and appliances that use electricity - perhaps even while surfing the internet on some sort of electronic device. And if you're anything like me, then there's a very high probability that you have invested in at least one, two or more of these devices. This is part of life in the modern world, and while much of it may seem normal, this lifestyle is far from sustainable. In fact, the environmental impact of electricity use has been rated as one of the most widespread problems that we face today .

In order to combat these environmental concerns, a large number of green groups have formed in order to help push the narrative and the importance of ESG.

Today, we will be touching upon the importance of ESG in modern society and how it both is useful and in some cases required in order to continue living a sustainable lifestyle.

To begin, let's take a look at exactly what environmental sustainability governance [ESG] is . In short, it is the system that will help shape the corporations of the future by using environmental measures to shape the corporations of today.

ESG is a system that has been used in the past by many large corporations, including Dow Chemical, Wal Mart and Unilever [3]. These corporations have found ways in order to "integrate sustainability into their business strategy" in order for them to be both aiming for a net zero future and lead other corporations to follow suit of the renewable energy transition.

The issue of ESG has become even more important in today's world for a number of reasons. For starters, many investors are demanding that companies provide them with information about the ESG policies they have implemented [4]. Secondly, there are also signs that governments will soon start to set regulations on corporations to do so as well. We, for one, are looking to assist these government bodies and large corporations to implement their strategies and to transparently report their activities.

ESG issues are also becoming more important because of the growing need for corporations to develop sustainable business models. The reason why this is so is because the costs of ignoring the environment and having a negative effect on society will be even higher than it already is [5]. Furthermore, we at Volterra believe that there needs to be more consistent transparency in this reporting so that current decision of these corporations can help drive the movement.

For example, if corporations neglect ESG issues and try to move their operations elsewhere as a result of poor governance there is no official documentation that explains what is happening. However, if corporations can produce such information as part of their normal reporting process it will make it easier for stakeholders to judge the environmental impact of these actions. This also helps with their overall branding and future to relate to the newer generations to come.

Of course, if these companies do not report or have a lack of official reporting, they will continue to face the issues of being socially irresponsible and even illegal.

There is increasing evidence that organizations put more emphasis on environmental concerns, recycling programs and goals for reducing greenhouse gas emissions when it comes to branding their corporation. So the question remains will this trend continue? Are they just putting a band aid on? Will they continue being sustainable in the long term or just burn out?

I believe that future generations will be responsible for making sure that these companies actually do what they say. This means that they have to have a plan not just for now but also for the years up ahead and how it will benefit them in the long run being more compliant with the ever changing ESG World. How will you play a role in this movement?

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-Mark Goorwah