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      Why is ESG and sustainability important for businesses?

      Sustainable development means meeting present needs without compromising the ability of future generations to meet their own. It aims to balance economic prosperity, with social equity and environmental preservation (in line with the triple bottom line approach: people, planet, and profit).

      E, S, and G (namely Environmental, Social and Governance) criteria are now fundamental for both corporate strategy and investment. These represent a key shift in the economy and everyday decision-making. All stakeholders are increasingly recognizing that ESG principles help maintain and create value, overcoming short-term complexities and allowing for improved long-term planning.

      Companies, investors and consumers are focusing more on the value of corporate social responsibility (CSR), recognizing the positive impacts the private and public sectors can deliver by operating in an ethical manner.

      ESG is therefore shifting from managing risks to creating new value. Embracing sustainable growth is key to building strong and resilient businesses.

      By working together, we can positively impact the planet and society, supporting this crucial transformation towards a more sustainable future.


      The three pillars of ESG: Environment, Social, and Governance

      environment esg
      social esg
      governance esg

      Environmental (E)

      Managing Climate and Resource Risks

      The environmental pillar of ESG focuses on how businesses interact with the planet’s systems. Addressing climate change, resource efficiency, and biodiversity loss is critical. Companies that integrate low-carbon strategies, circular economy principles, and responsible resource management can reduce risks, enhance compliance, and strengthen their market position.

      Social (S)

      People, Communities, and Ethical Responsibility

      The social pillar of ESG focuses on how businesses impact their employees, communities, and society. Companies that prioritize social responsibility foster a strong corporate culture, build consumer trust, and contribute to a more resilient economy.

      Governance (G)

      Ethics, Compliance, and Corporate Integrity

      Governance is the foundation of ethical business practices. Companies that embrace good corporate governance ensure transparency, accountability, and long-term financial stability. A sustainable culture of innovation enables businesses to adapt and grow while maintaining integrity.



      Building a Resilient and Sustainable Future

      By integrating environmental responsibility, fostering social equity, and upholding strong governance, businesses can create a resilient and future-ready organization. Addressing climate risks, promoting inclusive workplaces, and ensuring ethical leadership are no longer optional — they are essential for long-term success.

      Companies that embed sustainable finance, circular economy principles, and transparent ESG reporting into their core strategies will not only meet regulatory expectations but also drive innovation, strengthen stakeholder trust, and secure competitive advantages.

      Sustainability is not just about compliance — it’s about creating lasting value for businesses, society, and the planet.



      Explore our ESG & Sustainability insights

      Access fresh perspectives and actionable insights for realizing value from business transformation.

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      Domagoj Vuković

      Partner, Audit

      KPMG in Slovenia

      Sonja Žnidarčič

      Partner, Management consulting

      KPMG in Slovenia


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