Global KPMG Impact Co-Chair: ESG & Sustainability and National Partner in Charge, Climate Change & Sustainability Services, Australia
Looking after the world we live in for future generations is not just important to communities and society at large, but to business as well. Embedding ESG, or environmental, social and governance principles into a company’s strategy is now a business imperative.
Australia’s current position of ‘preferably by 2050’ is likely to come under increasing pressure during 2021 due to international government regulatory changes as well as rapid changes in the private sector.
With the 2020s often termed ‘the decade of action’ there has been a shift in companies (67 percent of ASX100) linking the UN Sustainable Development Goals (UN SDG) into their business activities.
Business is a critical player in achieving the Paris climate goals and is certainly not immune from the physical effects of climate change or the impacts of transitioning to a net zero economy.
The Q1 results are clear; despite trillions of dollars being wiped off the market, globally, ESG funds simply lost less.
Expectations that businesses need to act to minimise their contribution to potential future climate change have increased.1