Page 62 - Zenith2024

Zenith 2024

As a consequence of the industrial revolution and the
advance of scientific technology, we have reached
unprecedented abundance. But there are too many
problems surrounding this advance. The processes that
produce these advances cause environment pollution
and infringe workers’(in poor work environments) human
rights. What do corporations have to do in this situation? It
is the ESG management that is introduced to solve these
problems.

ESG refers to three core factors for sustainable development-Environment, Social, and
Governance. In the environmental aspect, corporations should reduce pollutants and try to protect
ecosystems and biodiversity. In the social aspect, corporations should consider the diversity of
consumers and construct cooperative relationships with local society. And in the governance
aspect, corporations should be able to reveal their management system and the inside of product
producing processes transparently, according to business ethics. Corporations should follow these
principles while also considering ‘sustainability’.

You may think that the term ‘sustainability’ sounds unfamiliar. However, in fact, sustainability
is not an unfamiliar concept to us. In 1987, “Our Common Future”, announced by the UNEP,
suggested the term ‘Sustainable Development’ first. In 2004, ‘ESG’ was mentioned as triple
bottom line for the first time in the UNGC report “Who Cares Wins”. And in 2006, the UNPRI
announced that they will consider ESG as a factor in investment decisions, to better manage risk
and generate sustainable, long-term returns. In other words, as time flows, the importance of a
corporation’s value in the aspect of unfinancial process is on the rise.

How can we realize ESG management? Corporations have to consider not only their own
interests, but also responsibility for society and the environment. For corporate activity and the
earth’s environment to coexist, corporations should try to protect the environment by reducing
environmental pollutants in production processes. For instance, Patagonia, (making outdoor

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