Blog by Raam Shanker

The Fundamental Problem with ESG Initiatives

Utter the word “sustainability” and you will be surrounded by flag bearers of a new acronym on the block called ESG, promising you the entire universe.

However, beneath the surface of lofty promises lies a fundamental problem that challenges the efficacy of ESG initiatives in preventing planetary degradation. In this blog, we unravel the intricacies of the ESG landscape, shedding light on why relying solely on these initiatives may be a perilous path for achieving true sustainability. As practitioners of Sustainability by Design, we understand and know that ESG will not save the planet, and real sustainability will require outcomes-centric action.

The Promise of ESG Initiatives:

ESG initiatives have been championed as a panacea for addressing the environmental impact of businesses, improving social responsibility, and ensuring robust corporate governance. The idea is to align investments and operations with ethical, sustainable, and socially responsible practices. While the intentions behind ESG initiatives are commendable, the execution and the underlying assumptions often fall short of delivering the transformative change needed to safeguard the planet.

The Fundamental Problem(s):

Greenwashing and Superficiality: One of the fundamental problems with ESG initiatives lies in the potential for greenwashing – the practice of giving a false impression of environmental responsibility. Companies may prioritise optics over actual change, engaging in token gestures rather than implementing substantive, impactful measures.

Lack of Standardisation and Consistency: The lack of standardised metrics and reporting practices within the ESG framework makes it challenging to assess and compare the sustainability efforts of different entities. This inconsistency dilutes the effectiveness of ESG initiatives, allowing for a wide range of interpretations and practices.

Short-Term Focus and Financial Metrics: Many ESG initiatives lean towards short-term financial metrics rather than prioritising long-term, sustainable practices. The emphasis on immediate financial gains can divert attention from holistic, enduring solutions needed for meaningful planetary preservation.

Limited Regulatory Oversight: The voluntary nature of ESG initiatives raises questions about their effectiveness. Without robust regulatory frameworks and enforcement mechanisms, companies may lack the necessary incentives to go beyond superficial compliance and embrace deeper, systemic changes.

Why Going Down the ESG Route is Dangerous:

Potential for Tokenism: ESG initiatives, if not carefully implemented, can turn into mere checkboxes for companies, allowing them to claim adherence to sustainability without substantial action. This tokenism poses a significant danger, as it hinders genuine progress and accountability.

Delay in Systemic Changes: Relying solely on ESG initiatives may delay the much-needed systemic changes required for sustainable practices. True sustainability demands a comprehensive transformation of business models, supply chains, and consumer behaviors – changes that may not be achieved through ESG initiatives alone.

Risk of Complacency: The adoption of ESG initiatives might create a false sense of accomplishment, leading companies to believe they are doing enough for the planet. This complacency can impede the pursuit of more ambitious and transformative sustainability goals.

A Call for Holistic Sustainability:

Rather than viewing ESG initiatives as a silver bullet, it is crucial to recognise them as one small piece of a larger puzzle. Achieving genuine sustainability requires a holistic approach that goes beyond superficial measures. Companies need to embrace transparency, accountability, and a commitment to long-term environmental and social responsibility.

Equitus’s Vision for True Sustainability:

Equitus, as a proponent of genuine sustainability, advocates for a comprehensive approach that transcends the limitations of ESG initiatives. Our commitment extends beyond checkboxes, aiming for transformative changes in business practices, supply chains, and environmental stewardship. By focusing on innovative, sustainable solutions, with an engineering led approach focused on outcomes,  and pushing for industry-wide systemic changes, Equitus stands as a beacon for those seeking a more profound and lasting impact on the planet.


While ESG initiatives may have noble intentions, their fundamental problems pose significant challenges to achieving true sustainability. Embracing a more comprehensive, transformative approach is essential to address the urgent needs of our planet. Equitus leads the way by advocating for genuine, holistic sustainability that goes beyond the limitations of current ESG practices. It’s time to move beyond token gestures and embark on a journey of meaningful, lasting change for the well-being of our planet.