“Paula Vennels’ decision to step down from the boards of Dunelm and Morrisons demonstrates the influence of three little letters and should fire a warning shot across the bows of all companies,” comments Danni Hewson, AJ Bell financial analyst.
“ESG has power, and whilst much of the focus has been on the environmental credentials of businesses it’s the S and G that have quietly been taking hold. Deliveroo’s IPO might have been a different tale if it hadn’t been caught up in a row about employee rights and companies considering large pay rewards will find the shareholder bar this year is considerably higher than in the past.
“It’s no longer enough to talk the talk on ESG, companies have to walk the walk and they will judged harshly by investors and consumers if they fail to own up to or learn from their mistakes.”
