The why and how of ESG

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Plus, the ten rules of growth ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
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Monthly Highlights, September 2022
Organizations have been allocating more resources toward improving ESG (environmental, social, and governance) efforts, but the acronym has consistently encountered doubt and criticism—namely, for being perceived as a distraction and intrinsically too difficult. Senior partners Lucy Pérez, Vivian Hunt, Hamid Samandari, and coauthors rebuke those claims, asserting that ESG is now more essential, relevant, and quantifiable than ever. Does ESG really matter to companies? What is the business-grounded, strategic rationale? This month, our featured stories look at the why of ESG (that is, why ESG matters to companies), as well as the how of ESG (that is, how companies can take a more systematic and rewarding approach to ESG). Other highlights in this month’s issue include the following topics:
  • ten imperatives that should guide organizations seeking to outgrow and outearn their peers
  • why companies should focus on resiliency and cost but also make intentional bets for longer-term growth
  • the technology trends that matter most for companies in 2022
  • why leaders should play offense and defense during times of volatility
Editor’s choice
 
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Does ESG really matter—and why?
Although valid questions have been raised about ESG, the need for companies to understand and address their externalities is likely to become essential to maintaining their social license.
Deliver meaningful impact   >
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How to make ESG real
While ESG is likely to evolve both in substance and name in the coming years, its underlying impulse is here to stay. Here’s how companies can take a more systematic and rewarding approach to ESG.
Be effective   >
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by "McKinsey Highlights" <publishing@email.mckinsey.com> - 11:22 - 3 Sep 2022