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Hello reader,
“A society grows great when old men plant trees in whose shade they shall never sit.”
I love this saying because it’s something I strongly believe in, even though it seems like it’s getting harder to actually see it happen.
Billionaires hoarding functionally unlimited wealth, corporations dumping waste or ignoring environmental concerns simply because it’s the cheapest way out (and we’ve got to get those share prices up, am I right?), an entire generation of landlords raising rents through the roof, you name it.
Selfish behavior has always irked me. I’m biased, of course, being on the receiving end of many of the downstream effects, but I don’t think it’s any less true that we should strive to be better as a society.
That’s why it’s nice to finally see that environmental, social, and governance (ESG) factors are being placed a little higher on the priority list. Even if it’s for purely financial reasons, at least there’s some incentive to make the world a better place. Today’s story takes a look at how exactly this is playing out.
Today we look at:
- The financial logic behind incorporating ESG
- BYD’s second Southeast Asian factory
- Other newsy highlights such as Indian crypto platform WazirX getting hacked and the Monetary Authority of Singapore’s additional commitment to AI and quantum computing.
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Heal the world
Image credit: Timmy Loen
Lately, there has been some improvement in the business world. Several jurisdictions have mandated ESG reporting, and many firms are incorporating it in an effort to improve their brand image and attract more ESG-conscious customers. Ultimately, it’s good for companies to do so, given that there are several benefits to the bottom line. Here are some of them.
- Risk management: Sustainability and social consciousness help round out a company’s risk profile, as ESG metrics often provide critical insights into non-financial risks that can significantly affect a company’s performance.
- Numbers game: ESG metrics also open up opportunities for efficiency gains. For instance, sustainable packaging can reduce material use and waste, lowering costs.
- Staying clean: Ultimately, ESG reporting will be a requirement in many markets. Companies looking to attract investors will thus need a robust set of ESG data, which ideally reflects well on them at the same time.
Read more: Ignoring ESG? You might be leaving money on the table
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