Going through existential disaster, it’s solely pure that our perspective will change — for higher and for worse. In current weeks and months, as many people have “sheltered in place” within the face of a worldwide pandemic, every of us has come to grips with a beneficial reminder of what’s actually necessary: household, mates and colleagues; safety and security; meals and water; healthcare. By comparability, every little thing else appears small and all of the sudden insignificant. For a few of us, that features our work.

When persons are sick, struggling and dying — with little certainty about when or the way it will finish — how can we be anticipated to concentrate on a challenge deadline, a enterprise assembly or a PowerPoint presentation? Not too long ago, I used to be requested to take part in a webinar dialogue about environmental, social and governance (ESG) investing within the wake of COVID-19, and I needed to ask myself, “Is the work we’re doing at SASB utterly irrelevant or extra related than ever?” 

Essentially the most pressing and necessary work being carried out at present is that of our healthcare employees, grocery staff, supply individuals and others on the entrance traces of assembly society’s most simple and most important wants. We shouldn’t let a day go with out thanking them for his or her service, nor with out asking ourselves how we will higher assist them as they rise to satisfy the dimensions of problem earlier than us.

And shortly, we should begin giving severe thought to what we will do to make sure they’re by no means put in such a determined place once more.

Reply now, adapt as quickly as doable

Whereas at present’s triage efforts are paramount, society is clearly beginning to consider what’s subsequent. This is a chance for all of us — corporations, traders, authorities, civil society — to assume critically about what our position is perhaps in making a extra resilient future. 

Though the worldwide COVID-19 outbreak is initially an existential public well being risk, it additionally possible represents the daybreak of an financial “new world order” and a reshaping of the worldwide financial system. With out query, it’s too quickly to attract any conclusions concerning the classes we’ve discovered from this expertise, nevertheless it’s nonetheless clear that companies, traders and our total system of free enterprise might want to adapt to a brand new regular within the coming post-coronavirus period. 

Transparency results in accountability, accountability drives innovation and innovation is vital to resilience.

In recent times, the rise of ESG, accountable investing, company sustainability — totally different individuals use totally different phrases — has centered on evolving “enterprise as regular” by recognizing that successfully managing environmental and social points is vital to the long-term sustainability of each enterprise and society. The COVID-19 disaster is prone to speed up this pattern. The important thing questions which have arisen from the disaster are basically ESG questions, corresponding to:

Will rising biodiversity loss and the altering local weather affect the frequency and depth of pandemics? How can corporations adapt to make sure enterprise continuity in such an unsure atmosphere?
How can we guarantee extra resilient provide chains for important items, corresponding to meals and drugs?
What can companies in B2C industries do to make sure the well being and security of their staff and prospects?
How can healthcare suppliers higher guarantee entry to essential exams and coverings at an reasonably priced value?
How may a long-term interval of “social distancing” affect the adoption of synthetic intelligence and robotics, and the way will that have an effect on employees whose jobs can’t be carried out remotely — corresponding to manufacturing, waste administration and deliveries?
How can conventional and ecommerce retailers guarantee honest pricing and scale back the chance of provide hoarding or value gouging?
How can a variety of industries — throughout the transportation, expertise, hospitality and infrastructure sectors and past — successfully adapt within the wake of an anticipated rise in telecommuting and teleconferencing?
Will the COVID-19 disaster completely change client habits relating to purchasing, journey and leisure, with vital implications for the retail and hospitality sectors? 

As soon as the worst of the present disaster is behind us, it’s essential that we don’t weaken our resolve to make sure that people, companies, traders, economies — and thus society at giant — can change into extra resilient within the face of 21st-century challenges.

A possibility to adapt

Within the coming months, because the forces unleashed by the COVID-19 disaster proceed to reshape the financial panorama, they are going to convey long-held assumptions beneath scrutiny and doubtlessly render total enterprise fashions irrelevant. They are going to convey extra questions, but additionally — if we’re receptive to them — extra solutions.

At SASB, we encourage long-term pondering in capital markets, and whereas that will not assist remedy at present’s disaster, we consider it will possibly contribute to stopping — or at the very least tempering — tomorrow’s. 

We consider transparency and disclosure on business-critical ESG points will enhance how corporations and traders measure and handle so-called non-financial — however nonetheless essential — sources corresponding to pure, social and human capital. Additional, it should assist company administrators and managers, together with traders, perceive how efficient administration of these sources is essential to the long-term sustainability of a enterprise.

Rising from this disaster, we will form a future during which the pursuits of enterprise, traders and society are in nearer alignment.


One of the best reply to my query concerning the relevance of our work got here throughout a current “business deep dive” webinar. Our restaurant business analyst was discussing the connection between employee well being and foodborne diseases — a business-critical subject within the restaurant business — and the metrics that may assist drive efficient administration of such dangers, together with employee coaching and food-handling protocols. 

I instantly thought concerning the more and more clear connection between lack of paid sick depart and the unfold of sickness, and it grew to become clear: This disaster will present necessary new insights into non-traditional efficiency metrics that can assist drive a structural shift in how each corporations and traders take into consideration delivering long-term worth to each shareholders and society.

To return to my authentic query — is ESG disclosure irrelevant or extra related than ever — I consider the communication piece is vital. Transparency results in accountability, accountability drives innovation and innovation is vital to resilience. When traders readily can determine and direct monetary capital to the forward-looking corporations which can be evolving their enterprise fashions to thrive within the face of future dangers, markets shall be extra steady, extra environment friendly and higher ready to soak up surprising shocks.

At present, we’re being requested to decide on between lives and livelihoods. Rising from this disaster, we will form a future during which the pursuits of enterprise, traders and society are in nearer alignment. When financial and human prosperity are mutually supportive, we received’t must sacrifice one for the opposite. 

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