In today's environment, where change and uncertainty seem to be the only constants, more and more investors are taking a long-term view. 

Investors are now choosing to put their money into businesses that are sustainable, work with their environments and communities, act responsibly and generate return. 

The influence of social purpose on consumers, investors and the media is on the rise, and governments are also increasingly under pressure to regulate businesses from an environmental and social context.

Environmental, social (or sustainable or societal) and governance (ESG) is a means of measuring the environmental, social and ethical expectations of all stakeholders in a business. It is quickly moving on to the agenda of CEOs and boards of businesses whose values take them beyond the traditional objectives of profit generation and shareholder returns.

Why is ESG important for your business?

As a business, you need to understand your stakeholders and their expectations in order to:

• meet their expectations and enhance your business performance; 
• make the business more sustainable and, in the long run, more profitable;
• attract new consumers or new investors;
• measure, anticipate, prevent and mitigate your risks; 
• build your brand equity; and
• expand your opportunities as a business.

ESG provides you with a methodical approach to meeting the above objectives. 

Should you have any questions or require further clarification on ESG, please do not hesitate to contact our Dentons Kenya ESG team.