Measuring environmental, social, and governance (ESG) firm performance: A new story resembling an old one

An evolving set of measurements to assess the performance of firms focused on environmental, social, and governance (ESG) factors has emerged, resembling the early stages of knowledge management (KM) metrics development. Drawing from practical lessons from KM’s history, practitioners and policy makers can effectively integrate ESG practices. We underscore that overemphasis on complex measurements can hinder innovation and growth. Instead, accelerating the standardization of ESG metrics allows small and large businesses to embed ESG principles into their core strategies seamlessly. We highlight how sound ESG practices, exemplified by the sample companies reviewed (Walt Disney, Fiserv, and McDonald’s), represent solid investments that drive innovation and long-term success. For practitioners and policy makers, this means fostering an environment where ESG principles are foundational to business operations, ultimately benefiting the economy and society.