In the past, many companies adopted ESG goals as mere moral posturing. But with consumer preferences and political will, ESG is become mainstream. For us at General Electric where “energy” is our business model, decarbonization and the move away from fossil fuels as an energy source, and yet achieving stable and uninterrupted supply, is the new technology opportunity especially in an energy market which is facing a fair amount of commoditization.

Society is demanding that companies consider much more than just their bottom line, with investor strategies increasingly favouring those that are better placed on the ESG side of their balance sheets. Companies are being asked to rethink corporate purpose and align corporate values at the shareholder, employee, customer and community levels. More and more companies are realizing the significant impact that ESG is having and will have on their competitive position, bottom line and longevity.

Due to continued focus on climate change, sustainability has always been a driving force in all Norwegian government initiatives. One aspect of sustainability is responsible or sustainable investments hence Statkraft investments and decisions keep environmental and social governance as a key parameter.

The focus on ESG raises awareness of one's role in the chain of commerce and its effects on all stakeholders - internal, external and regulatory. The benefits of ESG transcend the balance sheet in the long term, but it's important to translate the short to midterm impact on the bottom line in order to create more awareness and add a competitive edge. In time, the role of the ESG officer must become as critical as any other CXO, business growth, which initially many believed to be at odds with ESG principles, must champion ESG, in order to truly succeed.

As entrepreneurs and business leaders, we have a serious responsibility to leave behind a better world for generations to come. Running our respective organisations with the highest levels of ‘ESG consciousness’, while striking the optimal balance between economic-gains and social-good is a clarion call. In time, every company will need an ESG officer who will be of CXO rank, and those companies which become early adopters of the best ESG principles, will be handsomely rewarded by all stake holders.

Investing in ESG-centric companies has gone from fringe to mainstream over last few years as investors realize that such companies not only do-good, but also create superior economic returns. Investors, both foreign and domestic are now actively pursuing and funding these companies via their mainstream and dedicated ESG centric funds.