Growth that supports longevity: the impact of innovation on ESG performance

Abstract

Sustainable development has gained popularity not just in the business landscape, but among stakeholder as well. This has cause organisations to be more aware of elements relating to sustainability. While the previous focus was on environmental aspects; many organisations are now integrating a more holistic approach to sustainability that covers the various spheres of economic, social, environmental and philanthropic. Previously, sustainability was more common among industries that had a direct impact on the environment. Sectors such as energy and manufacturing were more linked to sustainability concerns. However, as the concept evolved, its reach spread to all organisations and the concept itself encompassed more than just the environment aspect. The pressure for organisations to act in a more sustainable manner also increased. Beyond just paying lip service to these elements, many stakeholders are concerned about the detailed workings around these areas that organisations are involved in. If organisations cannot back up their claims of sustainable practices with visible results, then it can lead to more severe consequences. The term "greenwashing" has risen to define organisations makes claims regarding their environmental efforts that cannot be substantiated. With the increased access of technology as well as information, such claims can easily be checked by most individuals. Therefore, it is important that organisations are careful about the claims they make and can ensure that there is evidence to support them.