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Whither the ESG Revolution?

Many companies are promising to align their objectives – including how they measure their performance – with broader imperatives relating to sustainability, development, and social well-being. But progress will require effective incentives, and creating them is far from being a straightforward matter.

MILAN – Environmental, social, and governance considerations are playing an increasingly prominent role in business. ESG is now central to how firms in a wide range of sectors, including finance and asset management, define their purpose, mission, and strategy, and it is increasingly shaping hiring practices and regulatory activity. But whether the apparent embrace of ESG will deliver real progress remains to be seen.