The unprecedented response to Russia’s invasion of Ukraine and the global outcry from consumers, lawmakers and government officials may signal a shift in how corporations should be evaluated on environmental, social and governance criteria, observers said.
Investors and regulators need to emphasize adaptiveness and flexibility in ESG “screening” and metrics so that companies can be held accountable to future geopolitical conflicts and other issues that may emerge as top of mind for asset managers and shareholders, they said.
Some 400 companies have either announced they will stop investments in Russia or cease operations and sales altogether, researchers from Yale University’s Chief Executive Leadership Institute found. Those that remain face mounting pressure from consumers, employees, shareholders and countries doubling down on economic sanctions since President Vladimir Putin launched an assault on Ukraine last month.
