The article discusses the challenges faced by finance chiefs in proving the value of environmental, social, and governance (ESG) initiatives. While many companies have increased spending on ESG projects, finance chiefs must demonstrate that these initiatives offer good value for money. The process of assessing the return on investment (ROI) of ESG initiatives can be daunting, but according to James Stacey, a partner at sustainability consultancy ERM, there is no need to worry. Companies simply need to assess the ROI of their ESG initiatives in the same way they would judge other investments that could impact their future financial performance. The article also highlights the importance of considering the impact of ESG initiatives on local communities and the environment, especially in regions that suffer from water scarcity.
