The carrots and sticks of ESG performance

We all know the 'carrots' applicable to good ESG performance: cheaper funding, greater customer engagement and custom from the associated improved market image. There is a proven positive correlation of good ESG performance with increased profits or improved share performance. As with the colloquial expression, there are also 'sticks' to encourage companies to have a better ESG profile. One big 'stick' is the possible litigation that can arise when a company does not do enough or gets its ESG positioning wrong, even for well-meaning companies with ESG strategies. Struck by the stick ...