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The great ESG language divide

Can companies cut to the chase, and investors pick up new lingo?

Wong Pei Ting

Wong Pei Ting

Published Wed, Jul 19, 2023 · 07:43 PM
    • The latest sustainability reports of the 20 largest primary-listed companies on the SGX average 45,939 words – three times the word count of their financial statements for the corresponding FY.
    • The latest sustainability reports of the 20 largest primary-listed companies on the SGX average 45,939 words – three times the word count of their financial statements for the corresponding FY. PHOTO: YEN MENG JIIN, BT

    THERE is today a huge disconnect between the way investors consume sustainability content, and the way companies produce it. They have to meet in the middle.

    Companies’ sustainability communications have to be less self-serving. And investors have to bite the bullet and pick up some technical jargon to tune in to the conversation and keep companies accountable around new environmental, social and governance (ESG) focuses. 

    I see why there is a divide. Having watched the ESG space for a year now, I can now fully appreciate the running joke that if we haven’t drowned from rising sea levels by 2050, we would drown instead in the sea of acronyms, jargon, and words.

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