Role of Environmental, Social and Governance (ESG) in the Achieving Sustainable Development Goals: A Brief Review

Abstract

The United Nations (UN) 2030 Agenda for the Development of Sustainability and the seventeen Sustainable Development Goals (SDGs) serve as a reminder that the achievement of sustainable development has become a worldwide necessity. The idea of ESG (environmental, social, and governance) has gained popularity as an organizational structure for incorporating sustainability issues into business processes and choices regarding investments as the globe struggles with urgent challenges including climate change, inequality, and resource depletion. Standardized measurements and criteria are missing from ESG reporting. It is difficult to evaluate the effect of ESG actions on certain SDGs in the absence of reliable data. Businesses frequently have to choose between several ESG criteria and SDGs. Prioritizing becomes challenging when financial resources that may be used for social projects are needed to solve environmental issues. ESG practices might not be in line with shortterm profit targets, which would cause the emphasis to shift from long-term sustainable development to immediate financial gains. The interconnectivity of social well-being, environmental preservation, and responsible governance is highlighted in this review article, which examines the varied roles that ESG principles play in accomplishing the SDGs.