Supply Chain Digital Magazine February 2023 | Page 15

1960s

The dawn of sustainable investment The 1960s sees the beginning of ‘ socially responsible investing ’. Organisations begin to exclude stocks or entire industries from their portfolio should their operations not be seen as ‘ socially responsible ’.

2005

ESG is born The term Environment , Sustainability & Governance ( ESG ) is coined by the UN Global Compact in 2005 in a study called Who Cares Wins , which urges the financial industry to better integrate ESG issues in securities brokerage .

2013

The rise of ESG investment ESG investment begins to drastically increase , following heightened interest in the correlation between corporate sustainability and positive financial results .

2015

The Paris Agreement In 2015 , the Paris Agreement – a legally binding international treaty on climate change – is signed by most leading countries . This encourages investors to begin targeting companies with ESGcompliant supply chains .

2018

GRI standards GRI Standards allow organisations to publicly report the impacts of their activities in a transparent way to stakeholders . Launched in 2000 , they begin to see serious ESG traction around 2018 .
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