This blog is written by Dr Bob Eccles, Chairman of ESG Quant fund manager, Arabesque Partners. It first appeared on Forbes.com
Think of the word “sustainability” and what springs to mind? For many, it means being “green,” and accepting the need for more careful use of increasingly limited natural resources. More specifically, it is a word synonymous with energy renewal and efficiency programs, harnessing the power of the sun, water and wind.
Advocates of these programs argue that they are ultimately good for the bottom line. Yet there are those – and there are many across the boardrooms of global business – who caution that sustainability can be a slippery slope, leading the corporation to make investments that may be good for society but detrimental to shareholders.
Let me offer another word to consider – “development.” Perhaps you would associate this with something that governments are responsible for – the economic and social development of their country through sensible domestic and foreign policies. Companies, of course, should be in compliance with whatever laws exist to implement these policies, but they are not directly responsible for development, right?
Read the full piece on forbes.com