ESG
“WHAT COMPANIES GET WRONG IS THINKING THEY NEED TO GIVE UP SOME PROFIT FOR PURPOSE ”
RAJEEV PESHAWARIA FOUNDER & PRESIDENT OF THE LEADERSHIP ENERGY CONSULTING ( LEC ) COMPANY
When it comes to measurement and reporting on social impact , Peshawaria draws on that extensive experience to take a pessimistic approach .
“ I am not a huge fan of the ‘ measurement mania ’ that has gripped the ESG space these days ,” he tells Sustainability magazine . “ This is because measurement and reporting requirements are being misused and green washing and social washing are rampant .
“‘ What gets measured , gets done ’, they say , but often forget that over-emphasising measurement leads to bad behaviour . It ’ s
quite simple – if I ’ m a CEO and my bonus is linked to some ESG markers , it is highly likely that I will be tempted to show numbers that make me look good regardless of the actual impact . We see a lot of this happening these days .”
Peshawaria shares an anecdote of a director of a global company with a great track record in creating positive social impact saying to him – “ for us social impact is not about CSR , it is a growth imperative . For over 150 years , we have seen that the more we do for society , the more our shareholders benefit in the long term . Social impact measurement is difficult and subjective . While we try our best to measure and track , we do more and measure less .”
Rose Stuckey Kirk is Chief CSR Officer at US wireless network giant Verizon and seems to have an opposing view when it comes to the need for extensive measurement .
Kirk says Verizon maintains a firm grip on tracking the goals set for the initiatives that are part of its responsible business plan , Citizen Verizon . sustainabilitymag . com 67