SummaryEnvironmental, Social and Corporate Governance (ESG) is a set of criteria that are used to judge organisations in how they make a positive contribution to the world and society. Since the 60s, there has been more of a conscious effort for consumers and investors to get behind brands that care about issues other than simply making profits. Because consumers and investors are more informed than ever, companies are increasingly making an effort to consider ESG issues in their business strategy. The environmental factors look at the organisations environmental impact and its ability to mitigate various hazards that could have a negative impact on the natural world. Every company consumes energy as well as resources, and as a result, it has an impact on and is influenced by the environment. The social element looks at how the company interacts with other businesses and communities, as well as how it views social issues such as diversity, inclusiveness, labour relations, and human rights. Internal affairs and the organisations connections with its primary stakeholders, such as employees and shareholders, are the focus of the Governance component. Internal policies, controls, and procedures are used to comply with the law and suit the needs of the organisation. When ESG factors were first brought up in business discussions, many organisations ignored them, thinking that it would hurt profits to focus on aspects that dont directly impact the business. However, as the years went by, more research into how ESG can affect an organisation revealed the positive benefits an ESG strategy can bring. The sports industry is one of the many industries around the world that is starting to take notice of ESG factors. Sports organisations are increasingly looking at how they can have a positive impact on the environment and society. By focusing on social, environmental and governance factors, sports organisations can improve their standing with the fans, gain support from new consumers and investors and help to improve their chances of long-term success. To adopt an ESG strategy, organisations need to have a process for identifying, analysing and implementing ESG issues and risks. Identifying ESG factors works in a similar way to a risk assessment, looking at which areas of the business are affecting by specific issues and also evaluating the level of their impact. An organisation must then consider what part of their business strategy can be adjusted to change the kind of impact they have. The environmental impact of sports shouldnt be understated. Although it does not pollute nearly as much as some other industries, sports organisations still generate their share of greenhouse gases and also produce a lot of waste while using up plenty of resources. If sports are to continue to thrive in a world that is increasingly focused on conserving the environment, sports organisations will need to look at how they can reduce their environmental impact. In terms of their impact on society, few other industries are as influential as the sports industry. Billions of people around the world watch sports, and theyve been a huge part of our culture since the start of civilisation. With people looking up to athletes as their heroes, sports stars and organisations can have a big impact on our behaviour as a society. As a result, its important that these athletes and organisations stand for progress and help shine a light on social issues such as gender and racial equality as well as human rights. Sports can have an enormous positive benefit on society, and sports organisations have a responsibility to help their local communities. Corporate governance involves the hierarchy and decision-making process of an organisation. Every company has a set of rules, processes and procedures that govern how the organisation operates and determine the direction it takes. These processes involve balancing the needs of the employees, shareholders, executives, government and the general public. Ethics, compliance with regulations and the overall structure are all important factors to consider for sports organisations and can have a large impact on the success of an organisation. ESG factors can have a range of different impacts on effects on organisations as well as on society and the planet. One of the biggest driving forces behind the increase in companies implementing ESG into their strategy has been the fact that it can increase company performance. Studies have shown that an ESG strategy has a positive effect on revenue, finding and retaining talent and more. One thing that consumers and investors need to be aware of is that companies can mislead them over their ESG practices. Greenwashing is a common tactic used by companies to appear sustainable without actually putting in the effort to change their business practices. Major greenwashing scandals have shaken the publics trust in big companies, and more needs to be done to ensure that organisations cant lie about ESG factors. Since the 60s, when consumers and investors
