ESG is not a fad but an urgent business priority, says IoD

The Institute of Directors is today publishing a policy paper, ‘ESG Priorities for UK Companies 2022’, which sets out a number of ESG priorities for UK companies and organisations.

Environmental, social and governance considerations are increasingly important decision-making criteria for all types of organisations – not only as a means of winning the trust of stakeholders but also as barometers of effective business management.

The IoD provides a checklist of ESG priorities which are worthy of boardroom discussion in 2022, organised across the following key themes:

The report’s author and IoD Director of Policy and Corporate Governance, Dr Roger Barker, said:

“A strong ESG profile is attractive to potential investors, lenders, employees and customers, and helps build the brand of the organisation.

“Conversely, weak ESG performance is a red flag. It could indicate that the company’s leadership is not well aligned with the interests of wider society – bringing its longer-term sustainability into question.

“Although a focus on ESG is emerging as a mainstream business priority, there remains a body of opinion which argues that it comes ‘at the expense of focusing on the fundamentals of the business’.¹

“Such an attitude is increasingly at odds with the demands of younger customers and employees – who expect companies to stand for something with a positive social impact.”

The full IoD Policy Paper – ‘ESG Priorities for UK Companies 2022’ – can be downloaded here.