Global industrial development leads to new innovations in strategic deployment, forcing human contribution evolve as well. For example, the inclusion of ESG integration strategists in organizations around the world is imperative to establish a global standard.
As the global industry increasingly becomes aware of how ESG integration affects the valuation of organizations, there becomes an increased need for a strategist to help maximize the valuation of a company.
Ulrika Hasselgren, the Managing Director and Global Head of Responsible Investment Strategy & ESG Integration at Institutional Shareholder Services, reflects upon how ESG integration strategies and strategists have evolved with industrial development.
“This used to be a ‘good to have’ function. But if we look at recent industry development including the generally high awareness and attention to ESG matters, the function has become strategic, and has gone from being a sidetrack to a strategic determinant in valuation and corporate governance.”
When industrial development improves, so too will the communications amongst different members within the industry. As awareness and attention to ESG matters rise, the door to address other issues within the industry opens as well.
“For companies, a clearly defined ESG integration strategist function enables effective communication and decision-making between management and the board, and between the company and its investors and owners.”
Specifically, an organization can look to see how ESG integration affects other particular issues like gender parity or climate change. The job of an ESG integration strategist evolves to help determine how other concepts can be incorporated as a positive practice in combination with ESG integration.
“First, I think it is valuable to reflect on the meaning of ESG, and to consider the difference between ESG perspectives and political initiatives,” says Hasselgren. “If political perspectives can be said to reflect ideology and current times, ESG can be viewed as a way to seek optimal solutions over time for investors and companies, including a positive impact on society.”