Moving Beyond CSR - Exploring How Environmental Social Governance Creates Value for Firms as Well as Society Through the Mitigation of Climate Change.

Purpose This academic paper seeks to explore the relationship between climate change and the current business operations. It seeks to address the current issues with corporate social responsibility, suggesting that traditional approaches are not enough to successfully curve an organisation’s carbon emissions. As such, the paper seeks to outline a new framework; one which incorporates the Sustainable Responsible Investing (SRI) theory of Environmental Social Governance (ESG). This new framework is paired with existing business case studies, with the intention to highlight how organisations can address the issue of climate change, as well as create value for their organisation. Research design The planned research approach of this paper was to gain qualitative primary data through semi-structured interviews with individuals who work within the sustainability department of large organisations, with the aim to formulate this paper’s own case study research. However, given the COVID-19 crisis, an alternative technique was adopted. Secondary data in the form of an extensive literature review as well as existing case studies was instead used to form the discussion and findings of this paper. Findings The paper successfully achieved its first, second, and third objectives. Its findings highlight how ESG activity can be implemented into an organisation’s value and supply chain to create environmental, economic, and societal value. The paper also highlights the problems with the current approach to CSR, suggesting that environmental related disclosures should not be a part of regular CSR activity; it should be a mandatory standalone issue completed by every organisation whose operations negatively impact the environment. Limitations and future research The case study analysis was relatively brief in comparison to what may have been provided if the original research approach could have been satisfied. Moreover, it was based on a more theoretical discussion. As such, it’s suggested that additional research should take a contrasting approach; drawing insight from quantitative data. Originality/Value The research that was conducted was based upon a relatively new notion and one that had not yet featured within academic research. As such, this paper provides the basis for the new framework that was developed. It is likely that within the upcoming years, there will be a growing body of literature surrounding these areas; future researchers may wish to build upon the innovation framework that was created. Keywords Climate change, Corporate Social Responsibility (CSR), Environmental Social Governance (CSR), Creating Shared Value (CSV), Corporate Value Chain, Supply chain management