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The Future of Environmental, Social, and Governance (ESG)
Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders should reassess their approach to ESG criteria.
What's going to happen to Environmental, Social, and Governance (ESG)?
The answer in one way is quite simple, "S" is going to become a whole lot more important. Social. Many CEOs rushed to sign declarations of purpose at the end of last year. We're going to find out now what those mean. As I chatted with CEOs across the globe, one of things that struck in my mind from one of them was that now we have to deliver. What will it take to deliver on purpose? First thing is to be clear on what that purpose is. Many businesses have been working on that.
Most importantly, what are we going to do that's different?
Some simple words of advice come to mind. The first is make sure that our people will now see this in metrics, and in responsibility and accountability. This matters more than anything. Secondly, be clear on how you as a leader are going to hold people to account on those metrics. Thirdly, walk the talk. Make sure your own house is in order. Do everything you can to ensure that before you talk about what the world should do, you're clearer on what you should do
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