This article from Corporate Board Member dives into the relationship of ESG and the current economic health of the nation. The article highlights both the criticism and favoritism of ESG in the face of recession. “An October 2022 survey of CEOs by KPMG found that 59 percent plan to pause or reconsider their organization’s ESG efforts as they adjust for a recession.” Many believe that the acronym ESG has a bad reputation especially from a political standpoint. Due to this polarization leaders believe it is important to separate the acronym (Environment, Social, and Governance). USC’s own Robert Hartwig agrees, “There is less subjectivity in the E component, as emissions can be measured more objectively than [the effectiveness of] different DEI programs or governance.” According to Hartwig ESG ratings are “highly subjective” and that executive compensation should be tied to ESG-related metrics. Read more about the article and Robert Hartwig’s comments by clicking here.
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