Environmental, Social, and Governance - ESG – has been growing in prominence as its application becomes essential to investor decisions and for businesses throughout the world who work to adhere to an evolving array of ESG framework principles. As more stakeholders engage, ESG is playing a decisive role as investments are evaluated and decisions are made which will ultimately affect the returns on those investments and, importantly, the costs and allocation of capital.
For multinational firms, especially those publicly held and whose ESGinvestment profiles and operations are already subject to growing review and verifications, the ability to identify meaningful and measurable frameworks is imperative. With ESG frameworks and practices at a relatively early stage of development, a look at three key regions across the globe highlights the ESG state-of-play and suggests why now is the right time to start building the processes and principles that will help balance the ESG and financial results and provide the flexibility that businesses and their investors need to achieve:
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