Topics that are needed innovation in ESG Imperative for sustainable management, investing, and development. Related references are provided for consulting innovation insights. I. Innovation Agenda for ESG Metrics II. Innovation Agenda for ESG Sustainability Analyses

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Innovation Agenda in ESG Imperative for Sustainability
Alex G. Lee1
Followings illustrate topics that are needed innovation in ESG Imperative for sustainable management,
investing, and development. Related references are provided for consulting innovation insights.
I. InnovationAgenda for ESG Metrics
ESG metrics need to be standardized.
ESG metrics need to be made less complexand more clear, relevant, consistent, reliable, comparable,
and informative.
ESG metrics need to be cost-effective for performance measurements.
ESG metrics need to assess real-world impacts on a company due to sustainability risks.
1
Alex G. Lee, Ph.D Esq. is a principal consultant at TechIPm,LLC.

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ESG metrics need to be designed to measure a company’s resilience to sustainability risks.
ESG metrics need to capture business/industry/jurisdiction-specificmaterial sustainability issues.
ESG metrics need to provide a reliable foundation for cross-companycomparisons.
ESG metrics need to track and assess a company’s successin delivering sustainability-derived values
(sustainability impacts).
ESG metrics need to be made a basis for assessing likely future performance (forward-looking
assessment).
ESG metrics need to be accessed based onstandardized measurement (and data gathering)
methodologyto ensure consistencyand comparability of metrics.

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II. InnovationAgenda for ESG Sustainability Analyses
ESG sustainability analyses need to considerbusiness/industry/jurisdiction-specificcontext.
ESG sustainability analyses need to include sustainability maturity and impacts assessmentin a
company.
ESG sustainability analyses need to be dynamic and time-sensitive to capture the momentum and
turnaround of sustainability management.
ESG sustainability analyses need to adopt scenario analysis to understand a variety of potential future
internal and external states.
ESG sustainability analyses need to quantify real-world impacts of sustainable developmentgenerated
by an investee company.
ESG sustainability analyses need to considerwhether ESG integrated investing can be a source of
generating alpha (achieve above-market risk-adjusted returns relative to a standard benchmark).
III. ReferenceList

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ESG ImpactIs Hard to Measure — But It’s Not Impossible,JenniferHoward-Grenville, HBR (2021)
ESG Investing For Dummies 1st Edition, Brendan Bradley, For Dummies (2021)
Values at Work: Sustainable Investing and ESG Reporting 1st Edition, Daniel C. Esty, Todd Cort,
Palgrave Macmillan (2020)
Sustainable Investing: A Path to a New Horizon 1st Edition, Herman Bril, Georg Kell, Andreas Rasche,
Springer International Publishing (2020)
Sustainable Investing: Beating the Market with ESG 1st Edition, Hanna Silvola, Tiina Landau, Palgrave
Macmillan (2021)

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