|
Common sustainability and social impact tools such as “Environmental, Social, Corporate Governance” (ESG), Life Cycle Assessments (LCAs), and Carbon Offset programs signal compliance with consumer demand for improved sustainability practices. Yet these tools can come with methodological issues rooted in the fact that environmental impact is insanely difficult to quantify, especially when attempting to factor all known externalities. Additionally, some tools face more challenges than others, especially those that depend on a company’s own commitment to corporate responsibility versus reporting to a third party – take, for example, the recent Vogue Business report of ESGs in the fashion world. Another barrier to understanding true measures of success is the variation in execution of these sustainability tools. LCAs, although vulnerable to input variability, can be conducted by third parties in order to minimize company bias. Often dismissed as ignoring the root problem of climate change, carbon offsets can take form in funding both sequestration initiatives and GHG emission prevention. Tools like these will continue to see hiccups, but the development to increase their accuracy is indispensable in fighting for greater transparency. For now, we’ll just have to continue to read the fine print.
|
