The integration of environmental, social and corporate governance (ESG) practices for a progressive world

Environmental degradation occurs when the environment is not being treated as it should, which is mostly through anthropogenic activities. Abiding by environmental protection and the natural usage, disposability of waste is important for natural flourishment and projecting human health which leads to preventing pathogen evolution. Further, this leads to abiding by One Health protocols. In broader scales it is known that academia and government regulatory bodies should consider a holistic approach to solve complex problems. There is a suggestion that One Health and ESG must join according to Celso Jos´e Bruno de Oliveira  , Wondwossen Abebe Gebreyes.

About One Health

One Health is  a multisectoral, transdisciplinary and integrated approach that assists in solving public health issues that are harming our civilization. One health has also been recognized by the World Health Organisation for tackling human health issues with complex solutions that are put forward. One health has also been recognised by World Organization for Animal Health (OIE), United Nations Environment Program (UNEP), and Food and Agriculture Association (FAO).In complex situations these pressing issues are so hidden that variants and pathogens are not even known about as with the Covid-19 pandemic. Animal and human health gets chronic when agents have a well understood epidemiology in place with mechanisms with prevention and control. These diseases remain a burden as there is a gap in leadership and key communication which is essential in combating and preventing these diseases.

The practices of Environmental Social and Governance (ESG)

The term Environmental, Social and Governance is an integrated concept of social and environmental aspects to view the impact of the business in these aspects. ESG also incorporates all stakeholders and views the sustainability risks in a company in accordance with transparency in governance, assessments and identification. The concept of ESG is not new, believe it or not this concept goes all the way back to the 1960s. The term has progressed from the concept of Corporate Social Responsibility (CSR) where businesses are managed in an ethical and sustainable manner. The ESG framework emerged from a stakeholder theory, which is through the involvement of stakeholders in ESG practices in order to build sustainable wealth. Currently, the ESG framework is a concept that is broad and dynamic and embeds corporate, social responsibility principles and includes activities regarding corporate governance. Therefore, ESG aims to create a positive environment around social and environmental aspects. 

The current ESG practices such as ESG 1.0 do not have quantifiable methods. In quantifying methods it could lead to attracting investors and consumers into a company. Yet, this remains a challenge amongst companies. The urgency of issues around climate change, the food security crisis, and water scarcity have triggered investments to flourish worldwide. Statistics shows that “this is an encouraging trend, with ESG assets predicted to reach $30 trillion USD by 2030. Therefore, more than ever before, investors need to ensure that ESG practices are implemented effectively and quantitatively show how they contribute to improving our world.”

Financial markets are abiding by the ESG criteria through investment decisions which are surrounded by the term sustainability. Further, technology helps identify ESG related initiatives in providing ways to improve the environment and feeding into the Sustainable Development Goals in progressing and assisting societal needs whilst the financial growth of a company rises. To better understand an investor's financial decisions there are ESG investment models in place. Presently, there is a shift towards ESG 2.0 practices which are improved with regulatory policies and a shift in the leadership structures in a company. It has been noted that with the adoption of ESG practices, a company's corporate financial performance (CFP) will not be affected but rather increased. 

The joint of ESG and One Health

Governments need to sit with policies and review them and follow One Health principles. Further there are One Health pillars which involve plants, animals, and humans. Governments need to adhere to these pillars to improve the health systems in a holistic manner. These are the reasons why One Health and ESG practices should be joined. Findings show, ”while ESG practices are generally disseminated vertically through the supply-chain (companies demand suppliers to meet ESG criteria for products and services), it is the horizontal initiatives (ie., company company, company-government, company-academia) in which ESG practices are aligned to address maximize impact.” 

One Health has the following perspective:

“The unique capabilities of industry groups to execute ESG initiatives should be leveraged to maximize response to threats. Considering the enormous capacity of individual companies and their rapid communication ability, the private sector will be critical to integrated and properly communicated ESG practices, with the potential to generate a novel model to tackle and solve societal burdens and, most critically, save lives and improve livelihood at reduced costs in a timely manner.”

Private partners should also join One Health

One health can prevent pandemics, save lives and prevent the loss of money during these pandemics. During the Covid-19 pandemic the following has been noted: “the cost of the COVID-19 pandemic is known to surpass $9 trillion (World Economic Forum, 2022). Effective engagement and investment of ESG by industry groups prior to the onset of this pandemic could have minimised the financial damage and indeed saved a large number of lives.” It is believed that One Health must be fit amongst ESG 2.0 leaders. The vision of One health is the following: “One Health implementation does not imply that the public sector abdicate its role in public health, but rather emphasises that public health regulatory and research sectors of government complement with industry ESG.”

A personal perspective

Health is Wealth and everyone needs a healthy environment to be productive. For example, when the covid-19 pandemic had an outbreak - businesses, firms and companies lost a lot of income and if ESG is joined with One Health then the environmental and societal health needs would be improved. Let's see if the ESG 2.0 leaders adopt One Health.