If environmental, social and governance (ESG) is to have a meaningful impact, we need to urgently standardise the measurement and disclosure of its elements, argues  Associate Professor Sukhbir Sandhu, the Executive Director for the Centre of Workplace Excellence (CWeX) at the University of South Australia.

Environmental, social, and governance (ESG) gained popularity around 20 years ago. At its core, ESG captures the idea that firms should not be evaluated just on their commercial performance but also on their environmental, social and governance performance. This numeric evaluation is aimed at giving ESG concerns a “legitimate” seat on the table along with other financial indicators of firm performance.