Abstract

This chapter delves into the emergence of the concept of environmental, social and governance (ESG) principles that have become a fundamental component of corporate strategy in terms of responsible business practices worldwide. It traces the historical development of ESG that began with a joint task force initiated by the United Nations (UN) to address growing social and ethical concerns about business practice. In addition, it explores the diverse stakeholders involved in initiating the ESG movement such as analysts, the private sector, business consultants and independent financial advisors, financial institutions, pension funds and pension trusts, investors, non-profit organizations (NGOs), regulators and stock exchanges. Subsequently, it highlights the significance of the Conferences of the Parties (COPs) in shaping the ESG policies and frameworks.