The Echo

ESG Is A Strategic Initiative

Written by Jesus Salazar | Dec 2, 2021 5:00:15 PM

Recent coverage of the UN COP26 Climate conference has highlighted the ongoing conversation of aligning goals surrounding ESG and reconciling the business imperative of making investments yielding significant rates of return. For example, the recent piece in Strategy + Business by Daniel Gross, “Aligning climate goals and business imperatives.”

There is no doubt that global concerns regarding climate continue to tick upward, and some of the current statistics show that if ESG activity is strategic, then the cost can be kept in check. In particular, when global efforts are successful and well-executed, it drives inspired innovation, and ultimate rewards for companies and their investors. Certainly, Elon Musk and Tesla’s mission “to accelerate the world's transition to sustainable energy” is an example of this.

At Prosono, we need to continue our strategy and our mission. We should not ask investors about making sacrifices for ESG initiatives, but we need to continue the discourse on when and how to create a business for good. Where profit and impact intersect is ultimately…Prosono. However, it is worth further contemplation, certainly vis a vis ESG, how to position social impact and financial returns. Why do we believe they need to be at odds with one another? Why do we default to social impact as a cost center for a business rather than a value generator. Perhaps, we ask the question with ‘impact’ taking the driver’s seat. As in, “How much and what kind of impact will drive a more sustainable business?” This is where Prosono begins. And will ultimately, shine.