The Next Generation NED Network held a lively and wide-ranging discussion on ESG – and particularly, the role of NEDs in steering their businesses through this seemingly ever-changing landscape. There were a variety of viewpoints and areas of expertise spanning finance, communications and academia.

This paper seeks to outline the rise of environmental, social (or sustainability1) and governance factors (ESG) in the commercial sector and explain how they will become increasingly relevant to modern charities. It covers the drive behind the increasing use of ESG factors in investment decisions, reputational risks, environmental awareness amongst consumers and clients and the need to attract talent with different motivations to work.

Boards need to see their way through the myriad of definitions, interpretations and priorities that have come to be ESG. The question is: how?

Chris Hodge FCG reflects upon acting as moderator for a panel discussion about how ESG issues are impacting on companies, investors and the relationship between them.

The ESG Summit brought together experts from across industry to explore recent developments in the fast-moving ESG landscape. Here are some key takeaways.

In the last five years, environmental, social and governance (ESG) investing has gone mainstream, and it has never been more popular. .

Wherever the pressure for embracing ESG comes from, it is the board that should lead on defining the organisation’s values and aims in tackling ESG issues as part of its legal, ethical and cultural responsibilities. However, with so many other issues competing for the board’s time, it can be difficult to explicitly address ESG in board papers and discussions.

The government’s recent announcement that it will build more data centres highlights the demand for technological infrastructure. As data centres expand, the discussion around their environmental, social, and governance (ESG) implications grows.

As societal expectations evolve and environmental and social challenges come to the forefront, regulators worldwide are increasingly focusing on ESG issues.