Sustainable practices have three facets – environmental, social, and governance.
There is a lot of research-based evidence that companies that are socially not responsible and follow poor governance practices are unable to compete with those with a cleaner image and a record of good governance standards and procedures.
Companies spend a lot of advertisement dollars and marketing efforts to present to their customers a brand image that is clean, trustworthy, and socially responsible. The concept of corporate social responsibility has emerged from such practices.
Scandals, cases of cheating, and misdemeanors are dealt with a heavy hand by most global regulators. Customers shun companies that are shaken by such scandals. Social and governance components of ESG are as old as humanity, and businesses understand their value.
Environmentally responsive governance is an old practice. It was, though, restricted to planting trees, taking care that new construction is not causing damage to the existing vegetation, etc.
With the realization that the use of fossil fuels and emission of greenhouse gases are leading to global warming, rising sea levels, melting of glaciers, and increased frequency of adverse weather events, the world has awoken to the danger posed by climate change.
Climate change is impacting the lives of people directly. It is no wonder that customers expect companies to be environmentally responsible and take steps to switch to cleaner fuels and adopt practices that will help slow down the rise in global temperatures.
Companies are dependent on their customer for growth and survival. A company that does not adopt sustainable practices will lose customer trust and disappear.

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Sudhirahluwalia, Inc