The "S" In ESG
Climate change is frequently front and center in the conversation about environmental, social, and governance (ESG) concerns. However, social issues are becoming increasingly prominent
Investors’ focus on reporting on issues around diversity, equity, and inclusion could become government-mandated reporting. While it is no surprise that there is an increasing focus on the environment and climate change under the current US administration, social issues are also at the forefront of the agenda. Last week, the Senate Committee on Financial Services considered multiple proposals for legislation on diversity data in a hearing titled “By the Numbers: How Diversity Data Can Measure Commitment to Diversity, Equity, and Inclusion.”
In considering these changes, the US senate recognized the significant benefits diversity and inclusion provides for businesses and shareholders. It may be an indication that the "S" will follow in the path of the "E" in ESG, garnering more attention in the future from investors and governments alike.
Source: https://www.forbes.com/sites/guidehouse/2021/04/06/the-s-in-esg/?ss=sustainability&sh=de55c7438399