Mistakes in Using ESG Principles

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Publicly announcing commitment to sustainable development principles does not guarantee real changes in the company's activities. Moreover, demonstrative compliance with ESG criteria without appropriate actions can lead to negative consequences for the business's reputation and create additional risks.

Insincerity
Violating ESG principles by deceiving consumers realtor email list is a fatal mistake for a business that claims to comply with these standards. Launching environmental initiatives without genuine conviction on the part of the company, as well as promoting values ​​that it does not live by, is classified as “greenwashing” or “greenwashing.”

Insincerity

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The terms gained currency in the United States in the 1980s, when a number of hotels encouraged guests to reuse their towels rather than dry-clean them. This eco-friendly approach to saving on laundry was not well received by customers.

Guilt game
Social advertising conducted by businesses should be built on the principles of respect and positive impact. Its goal is to motivate the audience to voluntarily participate in environmental protection, and not to cause a feeling of guilt or shame.

An example is the 2020 situation when Greenpeace Russia accused women of polluting the planet by using disposable hygiene products. This position was sharply criticized by women's organizations, who regarded it as an attempt to defame women for their physiological characteristics and ignore the systemic problem of a lack of recycling capacity in the country.

Broken Promises
It is not advisable to make loud statements about the introduction of environmentally friendly initiatives if the business does not intend to implement them, and to attribute environmental purity to products that they do not possess. In most regions, there are active supporters of the environmental movement who closely monitor the statements of companies. If an organization publicly promised to contribute to environmental protection, but did not fulfill its obligations, this will certainly be noticed. If it turns out that the advertised environmental benefits of the product are false, it will not be possible to avoid public resonance.

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h2>Frequently asked questions about ESG principles
The implementation of ESG principles can help improve the efficiency of business processes, optimize costs and improve corporate governance, which ultimately has a positive impact on the company's financial performance.

Who first formulated the ESG principles and when?
In 2004, United Nations Secretary-General Kofi Annan put forward the current concept of ESG principles when he addressed the management of the world's leading corporations with the appeal "Who cares wins." In his speech, he emphasized the need to integrate environmental and social aspects into companies' strategic planning.

Where can I learn ESG principles to implement them in my work?
Free online courses provide an opportunity to delve deeper into sustainable development issues and become familiar with the key environmental and social challenges of our time.

For example:

"Elevator to the Future";

"ESG: introduction", SberUniversity;

“Eco-projects as part of ESG-transformation of business”, Ecowiki;

“Promotion of CSR/ESG and social partnership”, Portal “Business and Society” and the Center for the Development of Philanthropy “Involvement”;

"RAEX Sustainability - Introduction to Sustainable Development & ESG".

What is the difference between ESG and sustainable development?
ESG principles are a methodology for taking into account and managing specific environmental, social and governance factors in the business practices of enterprises and investment decisions.

The concept of sustainable development has a broader scope of social, economic and environmental dimensions, and also assumes meeting the needs of the present generation without harming the descendants. Thus, the ESG approach is an integral part of the concept of sustainable development, focusing on specific aspects of the activities of companies and investments.

Research shows that organizations that demonstrate high levels of ESG maturity tend to have higher stock market valuations, higher returns on invested capital, and are more popular with investors.