Listen to Richard Hardyment, author and head of business engagement at the Institute of Business Ethics
In this week’s episode, Richard Howitt asks: can we believe the numbers on environment, social and governance (ESG)?
To address this, we welcome Richard Hardyment, a research professional, very used to assessing numbers, but who has just produced a book saying that there is little or no evidence that ESG has and has had any positive outcomes for people and the planet in the real world. And yet he calls himself emphatically pro-sustainability. After directing research at the World Benchmarking Alliance, he is now head of business engagement at the Institute of Business Ethics. His new book is called Measuring Good Business: Making Sense of Environmental, Social and Governance (ESG) Data.
In this episode, you’ll hear more about:
“I think all the work that's been going on in standards over the last 20 years really is hugely welcome and important. It's been critical in terms of painting a picture for companies and investors, the direction of travel. It's crucial to provide the language in terms of the frameworks, what we mean by these topics, what does human rights mean, what does climate resilience mean and codifying that. And it's been vital in terms of helping businesses allocate resources and do this in an efficient way. And obviously the upcoming regulations are presenting a challenge on that front.”
There's very little pressure being applied to companies by investors looking at how they're actually behaving and treating human rights as a core business priority. This needs to change.
Investors shouldn't just take companies' word for what they're doing; they should investigate what the companies are actually doing regarding human rights.
Germany's NewClimate Institute has produced the Corporate Climate Responsibility Monitor report, evaluating the transparency and integrity of climate pledges of 51 major companies across different sectors and geographies.
