An ESG Reckoning Is Coming

by Michael O’Leary and Warren Valdmanis

Summary : The push in recent years for companies to commit to ESG efforts is commendable. But so far, those efforts have yielded scarce results. For companies to be held accountable to these efforts, the authors suggest three accountability mechanisms: 1) Companies should be required to publicly report on their social and environmental impact with clear, standardized, and easy-to-understand metrics; 2) Consumers, employees, and investors all have a role to play in holding companies accountable; and 3) Companies who are serious about becoming more sustainable, inclusive, and socially responsible should consider becoming certified as benefit corporations.

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