Category: Article

Article

Linking Peacebuilding and ESG

The Business for Peace Fellowship is designed to introduce business owners, business advisors, business aspirants, entrepreneurs and start-up owners, etc., to the various peacebuilding approaches and the analytical tools needed to understand, analyze and resolve conflicts. Offered in three cohorts, the Fellowship is deemed to be instrumental in allowing the business community to have a say in and foster local ownership of peacebuilding activities. It will also allow business owners to critically engage in peacebuilding processes with a clear understanding of the cycle of conflict and interventions designed at each state. The program’s contents are designed in various pedagogical formats. It follows hybrid modes of content delivery e-learning, in-person practicum, field visits and action learning for a duration of three months. Each month consists of a two-day in-person workshop with an intensive list of seminars. Besides, the program involves two field visits: one local and another international.

As the Team Leader of the Membership Development and Relations Department at Addis Ababa Chamber of Commerce and Sectoral Associations, Helina recognizes the significance of sustainable business practices that not only generate profits but also contribute to environmental and social good. Her participation in the Business for Peace Fellowship Program exposed her to the concept of Environmental, Social, Governance (ESG). ESG is a multifaceted framework that considers how businesses can address environmental and social issues through corporate governance while creating long-term value for stakeholders.

The Business for Peace Fellowship Program offers participants a platform to familiarize themselves with various peacebuilding approaches and analytical tools in addition to exploring concepts like ESG. The program provides an opportunity to build capacity and foster collaboration among participants to analyze and resolve conflicts in their respective sectors.

Helina recognized that ESG was an integral part of an organization’s strategy that considers how generating value from all stakeholders is important. Following her participation in the program, she took the initiative to partner with the International Finance Corporation (IFC) to develop guidelines for Ethiopian manufacturing and agricultural firms on ESG issues. This partnership aimed to reduce risks associated with manufacturing and agriculture while improving overall firm sustainability.

Helina’s integration effort demonstrates how Initiative Africa’s Business for Peace Fellowship program encourages impactful collaborations between local organizations and international institutions, resulting in sustainable solutions that benefit stakeholders at all levels. Through this program, Helina was able to leverage ESG principles to promote peacebuilding and drive sustainable change in her organization and sector.

Article

Navigating the Controversy: Understanding the Complexities of ESG Investing

Navigating the Controversy: Understanding the Complexities of ESG Investing

In a recent article shared by The Washington Free Beacon, it was discussed how tobacco companies are “crushing” ESG (Environmental, Social, and Governance) ratings by investing in and supporting various social causes and initiatives. While tobacco companies are often seen as “sin stocks,” with negative reputations due to the health risks associated with their products, they are still able to score well on ESG ratings by focusing on these other factors.
According to the article, some tobacco companies have been investing in renewable energy and other sustainability initiatives, while others have been supporting education and public health programs. This not only helps to improve their standing on ESG ratings but also allows them to present a more positive image to the public.
However, the article also notes that some investors and analysts are skeptical of these efforts, arguing that they may be little more than “greenwashing” – a tactic used by companies to present an environmentally friendly image without actually making significant changes to their operations.
So what’s the relevance of ESG? ESG is increasingly seen as an important metric for evaluating companies’ overall sustainability and ethical impact. By considering factors beyond just financial performance, ESG ratings provide a more comprehensive view of a company’s operations and its potential risks and opportunities.
However, as this article illustrates, ESG can also be a bit of a double-edged sword. Companies that are able to score high on ESG ratings may appear more socially responsible, but if those ratings are based on superficial or misleading metrics, they may not be truly living up to those standards.
Overall, while ESG has its flaws and limitations, it remains an important tool for investors and others who are looking to promote sustainable and responsible business practices. As companies continue to seek ways to improve their ESG ratings, it will be important for investors and analysts to remain vigilant in their evaluation of these efforts to ensure that they are meaningful and sincere.