Bain's Sustainability and ESG in 2023
Looking ahead through the eyes of investors.
The current debate over ESG and sustainable investing is noisy and sometimes rancorous, and the temptation is strong to just tune it out until it’s better resolved. But, in the end, leaders must resist this urge and accept that it’s a relevant discussion: Sustainability considerations in investing appear here to stay, and not just in narrowly focused ESG funds.
For executives and boards alike, 2023 is already a complex year for which to plan. Given macroeconomic and industry business cycles, not to mention current geopolitical and inflation concerns, it may seem as if environment, climate, and social considerations are fading into the background. But don’t be fooled: They aren’t, regardless of whether they’re called ESG or something else.