In the past three years, the ESG issue has been heightened with politicization regardless of individual interest. There have been reports of investors prioritizing financial returns over environmental or social benefits, greenwashing, and ideological overtones, causing ESG to fall into a political divide, with some explicitly prohibiting the usage of the acronym. Geopolitical factors can significantly influence the regulatory environment surrounding ESG considerations. Factors such as political instability, human rights issues and social unrest can affect ESG considerations for companies operating in some regions.
Today, some CEOs avoid using the ESG acronym to avoid potential backlash, focusing instead on “climate-related risk” despite it being an ESG-related issue. But interestingly, there has been a shift observed where individuals who were once skeptical of ESG are now embracing its principles.
This highlights the ongoing discussion and changing perspectives su