The podcast by EGADE Business School and the Undergraduate Business School of Tecnológico de Monterrey is available on Spotify, Apple Podcasts, Amazon Music, and YouTube.
By JOSÉ ÁNGEL DE LA PAZ | EGADE BUSINESS SCHOOL
More than 20 years after their adoption in the corporate world, ESG (Environmental, Social, and Governance) criteria have become essential for evaluating business impact beyond profitability. However, recent debates have raised questions about their relevance and applicability today.
In episode 194 of Territorio Negocios, titled "ESG: Is It Still Relevant for Businesses?", Pablo Necoechea, regional director of EGADE Business School in Mexico City and Querétaro, and Mauricio Coindreau, global sustainability director at Alpek, discussed the current benefits and challenges of ESG for business profitability and stakeholders. Eduardo Aguiñaga, national director of Full-Time Programs at EGADE Business School.
Necoechea explained that ESG criteria have evolved to help companies manage risks and seize strategic opportunities. These criteria allow businesses to identify, measure, and manage risks and opportunities in non-financial matters. He added that ESG covers multiple dimensions, including environmental impact, governance, and community relations.
For his part, Coindreau emphasized that sustainability and profitability are not conflicting concepts but rather complementary ones. "Running a business goes beyond profitability. Its purpose is to generate societal benefits that are attractive enough to remain profitable," he remarked. He also stressed that ESG should not be seen as an obligation but as an opportunity to strengthen the relationship between businesses and their communities, investors, and employees.
The episode also explored the role of different stakeholders in shaping ESG’s evolution. Necoechea pointed out that "consumers are increasingly looking for socially and environmentally responsible products," prompting businesses to embrace these principles. He also noted that talent attraction and retention have become crucial factors: "Younger generations want to work for companies with strong ESG practices," he emphasized.
Regarding recent criticism of ESG, Coindreau argued that beyond the debate surrounding the acronym, businesses should focus on the core principles of sustainability. "We all want clean air, fewer health risks, fairer institutions, better education, and greater economic development," he stated. He added that the key challenge is to move past extremes and focus on concrete actions.
The episode is now available on Spotify, Apple Podcasts, Amazon Music, and YouTube.