ESG efforts are essential for reducing harm, but it is not the same as striving for a net positive impact
For business to fully contribute towards solving global challenges, concerted efforts are needed across the spectrum – from sustainable businesses to impact businesses and social enterprises.
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More companies than ever are now including environmental, social and governance (ESG) considerations in their strategies, and financial institutions are demonstrating significant appetite in funding them through “ESG investing”. Given this trend, it is natural to wonder why we still need a separate conversation about “impact”. This doubt arises because the distinction between ESG and impact remains unclear, especially as both terms are used interchangeably with “sustainability”. ESG and impact are both important, but they are two different things.
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