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

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 often viewed as a red flag.  It may suggest that the company’s purpose is not well aligned with the interests of wider society – bringing its longer-term sustainability into question.

This Policy Paper is published by the Institute of Directors (IoD) who have identified a number of ESG priorities for UK companies and organisations.  They are applicable to most entities – although the manner in which they are implemented will vary according to the size, complexity and sector of each individual enterprise.

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(8 pages)