The ESG Show Episode 13: Is ESG Too Vertical or Siloed?
Host: Michael Baxter, Co-Founder and Editor-in-Chief at Techopian
Guests: Jessica Long - Head of Ipsos’ Sustainability Management Consulting Practice
Aub Wallace - Co-Founder and strategist behind Dandelion Branding.
Dr Biswaraj Ghosh - an award-winning Sustainability/ESG Strategy Consultant
Environmental, Social, and Governance (ESG) strategies have become central to how companies shape their policies and measure impact. However, when ESG initiatives become too vertical or siloed, they can create focus issues, leading to inefficiencies and misaligned priorities within a company.
Lack of Holistic Integration: If ESG initiatives are treated in silos—where each dimension (environmental, social, governance) operates independently—companies risk overlooking the interconnectedness of these factors. For example, an environmental strategy focused solely on reducing carbon emissions may neglect the social implications of workforce displacement, or governance risks related to stakeholder engagement. This narrow focus can hinder comprehensive decision-making, ultimately weakening the business’s impact.
Fragmentation of Responsibility: When ESG is siloed, specific departments may take full ownership of a single component without coordination across teams. This often leads to communication breakdowns, misaligned objectives, and resource duplication. Governance teams might prioritize compliance, while social initiatives focus on community impact without addressing governance standards, weakening ESG reporting and financial transparency.
Distraction from Core Business Goals: A vertical ESG approach can also shift a company’s attention away from core operational objectives. Companies that focus too heavily on environmental strategies without aligning them with business models may sacrifice profitability or overlook opportunities for innovation. Siloed efforts could result in disconnected sustainability actions that lack cohesion, resulting in focus issues and diminishing long-term returns.
To mitigate these risks, businesses should focus on integrating ESG into a broader, unified corporate strategy that aligns with long-term goals and ensures collaboration across all departments.
Keep in mind ESG is still in the “works in a vacuum” phase and should be discussed, vetted and challenged until more concrete rules and regulations are finalized.
ESG is a very big area and is not without its critics. With greenwashing, capitalism and the argument of transparency and authenticity gaining traction it is imperative right now to break down these barriers and correct misinformation about ESG.
The ESG show aims to promote greater understanding of ESG issues and is the home of interesting and thought provoking discussions on ESG.
Powered by Techopian Limited and hosted by Co-Founder and public speaker, Michael Baxter to fly the ESG flag and speak openly about the positives and drawbacks around ESG and the use of technology in ESG strategy.
An ESG is not just a nice-to-have, it is absolutely essential to businesses now to sustain business longevity, attract sustainable funding and reduce the impacts of climate change.
Join The ESG Show every Wednesday for free to meet with various sustainability and diversity specialists and investors and Michael to discuss topical subjects which relate to ESG and debate the responsible use of technology in implementing ESG strategies.
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The ESG Show Episode 13: Is ESG Too Vertical or Siloed?