Staff Writer 
Neeta Joshi
IF Environmental, Social and Governance (ESG) only appears on the board agenda as an update, it is probably being treated as an obligation rather than a strategic priority.
For many organisations, ESG discussions still happen on the margins of boardroom conversations. They may appear as a compliance item, a sustainability report, or a communications update. Important, certainly, but not always central to how strategic decisions are made.
Yet increasingly, ESG is not simply about reporting or reputation. It is about how businesses manage risk, create long-term value, and remain resilient in a changing environment.
When ESG sits at the edge of the board agenda, organisations tend to approach it reactively. When it sits at the centre, it becomes part of how businesses think about growth, strategy, and long-term sustainability.
ESG as a business strategy issue
One of the most important shifts taking place in boardrooms globally is the recognition that ESG is not separate from business performance.
Environmental risks, labour practices, governance standards, and transparency all influence a company’s ability to operate, attract investment, retain talent, and build trust with customers and communities. Investors increasingly assess organisations on these dimensions, and regulatory expectations around ESG disclosure are steadily increasing.
For boards, the conversation should therefore move beyond “Are we compliant?” to a more strategic question, how do ESG considerations shape the long-term direction of the business?
Governance and
board accountability
Embedding ESG into strategy begins with governance.
Boards are responsible for setting direction and ensuring that the organisation operates with discipline and accountability. This includes determining how ESG oversight is structured, who carries responsibility at board level, and how progress is measured and reviewed.
Where ESG lacks clear ownership, it often becomes fragmented or treated as a communications exercise. Where it is integrated into governance structures and regular board discussions, it becomes part of the organisation’s leadership framework.
Understanding the
risks and opportunities
ESG issues increasingly intersect with core business risks and opportunities.
Climate-related disruptions, supply chain vulnerabilities, evolving regulations, and rising investor scrutiny are already shaping operating environments across sectors. At the same time, businesses that respond proactively can unlock opportunities, whether through innovation, improved operational efficiency, or stronger stakeholder relationships.
For boards, ESG discussions should therefore centre the material question, where could value be created through more responsible and forward-looking decisions?
The importance of
stakeholder trust
Another dimension often underestimated in ESG conversations is trust.
Employees, customers, investors, communities, and regulators are paying closer attention to how organisations behave. Decisions around labour practices, community engagement, transparency, and environmental responsibility increasingly influence how businesses are perceived and supported.
In many ways, trust has become a strategic asset. Organisations that build it strengthen their credibility and long-term licence to operate.
From principle to practice
Ultimately, ESG only matters if it influences how decisions are made.
This means moving beyond statements of intent to measurable action, setting targets, establishing clear performance indicators, integrating ESG into risk management and strategy discussions, and reviewing progress consistently at board level.
When embedded in governance, ESG becomes more than a reporting requirement, it becomes part of how organisations lead, adapt, and create sustainable value.
Because when ESG sits at the edge of the board agenda, it is easy to treat it as an obligation. When it sits at the centre, it becomes a source of resilience and long-term advantage.
l Adv Joshi is company secretary/ head legal at Stanbic Bank Zimbabwe
