Geilan begins by explaining that ESG criteria are based on global reporting standards and are used by investors in different ways depending on their beliefs. She breaks down each of the three components of ESG – environmental, social, and governance – to provide a better understanding of their meaning and significance. The perception of a company’s commitment to ESG criteria can impact its chances of success and financial returns.

In this chapter, we will discuss the various factors that influence the adoption of ESG practices in the financial services industry. We will begin by examining the role of government and regulation in shaping the sustainability landscape. We will then look at the differing perspectives on sustainability in different parts of the world, and how cultural and economic factors can impact the prioritisation of ESG issues. Finally, we will discuss the challenges posed by corporate lobbying and the need for transparent and science-based decision-making in the development of sustainability frameworks and regulations.