Data Citizens Dialogues ESG: More than a buzzword with Martin Weirich, PwC
The topic of sustainability has undoubtedly gained massive traction and momentum across industries over the past years. According to Martin Weirich, ESG is more than a buzzword and a PR trick — businesses have realized the beneficial impacts of sustainable models. From this, the term ESG or Environmental, Social, and Governance has emerged — and it's here to stay in the hopes of a better future for the world.
In this episode, Martin Weirich, Partner Financial Services Management Consulting at PwC, discusses the basics of ESG. Martin delves into the regulatory aspect of ESG and how it can help make the world a better place. He talks about shifting the perspective and the future trajectory of ESG regulations. He also shares the most significant challenges companies face and how to navigate them.
Tune in to the episode to understand how ESG is changing the ways of companies and the world's future.
Here are three reasons why you should listen to this episode:
- Learn the three aspects of ESG.
- Discover the impact ESG makes on companies and the world at large.
- Find out Martin's prediction on what the ESG landscape would look like five years from now.
Resources
Episode Highlights
[01:19] What is ESG?
- ESG stands for Environmental, Social, and Governance.
- The environmental aspect includes concepts around climate, biodiversity, energy consumption.
- The social aspect concerns equal opportunities, human rights, health and safety, etc.
- Governance is about determining good governance and dealing with topics from an organizational standpoint.
[02:18] The Regulatory Aspect
- The European side has already committed politically to specific ties they want to achieve as a region by 2030.
- There’s a new required regulation influencing different sectors to support the political world to reduce greenhouse gas emissions and move toward renewable energy.
- The regulators began with the financial services sector because it deals with the orientation of capital flows.
- Achieving the requirements also requires acquiring information (financial and environmental advocacy) from investee companies.
- These are not only regulations for bureaucracy’s sake but to make the world a better place.
Martin: "I think the dimension has a prompt. It's not only doing a tick box exercise from a regulatory perspective but also thinking out 'How can my products and my services help contribute to the overarching goals that we have all set?'"
[06:26] More than Just a PR Statement
- A lot of companies used ESG as a marketing instrument in the beginning.
- However, these companies soon realized that there's also public transparency enforced by regulators, clients, investors, and associations.