ESG and its Limit

Photo: Richard Drew/AP

Investment drives businesses and grows economies to reap benefits for mankind. #esg is one tool that is becoming strategic for both investors groups and investee companies.

To what extent investor activism, untainted by political overtone, is a matter of increasing concern.

Can shareholders (and regulators) impose micro-management on firms that have sustainability plan disclosure by claiming insufficiency of impact and bearing on #globalwarming?

It will be a test case for highly polluting industrial giants to be bound by industry vertical sectoral benchmarks, percentage of #climateaction budget against segmental profit/sales, public surcharge/impost of carbon tax, etc. to justify their continual operations in fossil-related activities, for instance.

The cost to track #scope3emissions to the end-users of individual consumers may well result in legitimate national or global oil corporations with meagre returns incommensurate to the vast majority of shareholders taking higher risk to invest in them.

The ethical value prescribes to the overall cost of operations is where the dispute could strike a balance acceptable to regulators and other stakeholders at large and beyond the domain of shareholders for #environmentalsocialandgovernance to have its limit of hold onto enterprises subject to mass market scrutiny.

Full article here: https://www.npr.org/2024/02/29/1234358133/exxon-climate-change-oil-fossil-fuels-shareholders-investors-lawsuit