ESG Reports Aren’t a Replacement for Real Sustainability

Corporate leaders are frustrated that their ESG efforts are not being rewarded. Reporting is more important than doing sustainable things. Is it possible for companies to make sustainable practices a source of competitive advantage. Only if they include it in their strategy. To do that, they should look at material ESG issues that are leading to risks and opportunities for the company, and then look at return on sustainable investment, setting benchmarks and tracking financial performance over time.

There are conflicting signals on the need for reporting. The SEC cracking down on "ESG-washing" by asset managers is one of the reasons why the backlash against ESG investing has arrived.