Evolution ESG

This infographic on the Evolution of ESG beautifully captures the journey of Environmental, Social, and Governance (ESG) standards from their roots in socially responsible investing to their prominence in corporate reporting and governance today. Here’s a summary of key milestones:

• 1960s-70s: The concept of Socially Responsible Investing (SRI) emerged, where investors began factoring in environmental and social aspects alongside financial returns.
• 1980s: Corporate Social Responsibility (CSR) gained traction, encouraging businesses to disclose their social and environmental impacts.
• Late 1990s: The Global Reporting Initiative (GRI) was established, providing a standardized framework for companies to disclose their ESG activities and impacts.
• 2002: The Carbon Disclosure Project (CDP) focused on environmental transparency, specifically addressing greenhouse gas emissions.
• 2006: The Dow Jones Sustainability Indices (DJSI) were launched to track the financial performance of companies leading in sustainability.
• 2010: The International Integrated Reporting Council (IIRC) introduced a framework for integrated reporting, linking financial and sustainability performance, while the Climate Bonds Initiative (CBI) promoted investment in green projects.
• 2011: The Sustainability Accounting Standards Board (SASB) was founded, focusing on ESG factors material to financial performance.
• 2014: The Integrated Reporting Framework by IIRC guided companies in combining financial, social, and environmental data in one report.
• 2015: The UN Sustainable Development Goals (SDGs) were adopted, setting a global framework for sustainability and influencing ESG guidelines.
• 2016: The EU Sustainable Finance Disclosure Regulation (SFDR) was enacted to increase transparency and combat greenwashing in sustainable investments.
• 2021: The EU Taxonomy for Sustainable Activities was introduced, defining activities that can be deemed environmentally sustainable.
• 2023: The Corporate Sustainability Reporting Directive (CSRD) was finalized in the EU, mandating sustainability disclosures for certain businesses.
• 2024: The U.S. SEC is considering proposals for mandatory ESG disclosures for publicly traded companies, while other regions like China and Brazil are developing their own ESG reporting standards.

The timeline illustrates how ESG has evolved from being a niche area of investment and corporate transparency to a mainstream and standardized practice across global markets.

source :

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