The elephant in the room: the ESG contradiction

WE ALL agree that finance has a key role to play in getting us to net zero. But we cannot ignore the elephant in the room: the inherent conflict between the E, S and G in environmental, social, and governance (ESG) investing.

As much as we might wish otherwise, the goals embedded in these initials do not always align with one another. That is why a compromise must be made. Investors, asset managers, and businesses have to agree on which of the three is the most important.

So, what is our position? We believe social or the S should be the highest priority. Why? Because sustainability is all about humanity. The S factor is broad. It varies by country, culture, and context. Figuring out how these can be lined up within the boundaries of net-zero goals must come down to people.