Sustainable business: Are ESG standards powering the resilience of a new business model?

• Published in: Bankarstvo
• Main Author: Petrović-Tomić Nataša
• Format: Article
• Language: English
• Published: Association of Serbian Banks 2023-01-01
• Subjects: esg; sustainable business; paris agreement; climate change; corporate responsibility
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2023/1451-43542302202P.pdf

The modern world requires companies to work on strengthening their responsibility. In recent years, the concept of sustainable business was placed in the forefront, and it relies on three pillars: ecologically acceptable profiting, good corporate governance, and care about social issues. That is the core of the abbreviation that has been increasingly present in Serbia, as well. The author explains the term ESG, as it is insufficiently familiar in her region, starting from the Paris Agreement on climate change, adopted in a proclaimed consensus and harmonisation of developed and developing countries. Starting from the aim of this Agreement, which is an efficient and advanced response to the threat of climate change, companies will from here on out have to adopt strategies to reduce their environmental impact, which is ultimately reflected on global warming. The author proves that ESG standards are powering the resilience of the new business models for all companies, which should lead to reaching climate neutrality in the future.