ESG | Why is ESG important for companies?

In this second blog of the ESG blog series, Stephanie ter Brake discusses why ESG is important for companies.

Whereas sustainability used to be, both legally and in practice, an afterthought, corporate sustainability increasingly seems to be at the top of many companies’ agendas. There are several reasons for this. For instance, the consequences of climate change can no longer be underestimated and companies want to do their bit to slow down this process. But it is also a logical consequence of the fact that investors, customers, employees and lenders have started to attach increasing importance to sustainability. It is therefore important for attracting funding, marketing a product and preventing reputational damage. Companies are increasingly being taken to court over sustainability issues, with Royal Dutch Shell being the best-known example. In this respect, the trend seems to be that judges increasingly take sustainability issues into account when colouring open standards. Finally, more and more tough legislation is being drafted to oblige companies to take the necessary measures and report on them. It is good to anticipate this.

Click here for the previous blog or visit our ESG theme page on our website for more information on this topic.