Human activity has made normal climate change abnormal. In our quest to expand and modernize our living conditions, we ironically destroy the very thing that allows us to live: the environment.
Climate change harms all human beings because of the extreme weather changes it brings with it. Households, businesses, and governments have all struggled to put in place protective mechanisms that shield against the devastating economic, social, environmental, health, and political impacts of this. Poorer countries and historically marginalized communities and individuals are particularly vulnerable to the effects of climate change as they have less resources to cope with it and are often relegated to last priority. It is thus important that all sectors of society cooperate and make the necessary moves to a greener way of living that benefit all, and not just a few.
Global leaders and organizations have established programs that make climate change more tangible and the need to address it more urgent. The most important of these programs act as penalties to businesses and countries that are slow to adopt environmentally sustainable practices, and as incentives for those involved in research of and implementation of climate change solutions.
I believe that the Global Carbon Tax is one means to deter the use of fossil fuels and reduce carbon emissions. But the adoption of ESG standards is also a complementary approach to address climate change and a just transition.
(E)nvironmental, (S)ocial, and (G)overnance benchmarks incorporated into business and investment practices make the shift to green more tangible. It’s a step towards deepening corporate social responsibility. While CSR was a foray into environmental consciousness, its benefits have been limited. Unlike the compliance with ESG standards, CSR programs do not have mechanisms that monitor whether or not a business has created long-term solutions that have positively impacted their internal and external processes, and better yet, the communities surrounding them.
When properly executed, ESG standards are not just end goals of companies, similar to what most CSR initiatives have been. ESG standards need to be empirically reflected in the very way businesses are run.
European countries have led the ESG standard rankings. Nordic nations Finland, Sweden, and Iceland and Western Europe neighbors France, Italy, Germany, and Switzerland outperform most of the world in all three ESG sub-indexes. Most of them have prioritized making changes that positively impact the environment, followed by addressing political and social issues that have implications for climate change solutions.
Other than ESG standards, the global community also abides by the Paris Agreement, a legally binding contract that requires its signatories to be active participants in climate change response. Global leaders acknowledge that the effects of climate change can be more strongly controlled with proper legislation that makes change mandatory.
In my upcoming book, “Reimagining the World Without Climate Change,” I delve deeper into discussions on the Global Carbon Tax and how it is implemented, other successful ESG policies we can adopt and replicate, and the industries with high potential for economic growth, ESG standard establishment, and sustainability.
Ultimately, the fight against climate change requires more than just policies—it demands a fundamental shift in how businesses, governments, and individuals operate. Carbon taxes and ESG standards are powerful tools, but their success hinges on collective action and accountability. While setting benchmarks is the first step, we must see the greater vision to embed sustainability into the fabric of our economies, industries, and daily lives. If we fail to act decisively, the cost of carbon will no longer be measured in dollars and taxes, but in the irreversible damage to our planet and future generations. The time for action is now.
On March 26, the Asian Consulting Group (ACG), in partnership with Asia CEO, will host the 3rd International Tax and Investment Conference at the Manila Marriott Hotel. This year’s theme, FAST Forward 2025: Promoting ESG Investing in the Philippines, highlights key industries driving sustainable growth. FAST represents (F)ashion, Film, and Arts; (A)rtificial Intelligence, Food, and Agriculture; (S)ustainable Cities and Communities; and (T)ravel and Tourism. At the event, we will also recognize outstanding sustainability and climate initiatives from both local and international organizations.
In addition, the conference will serve as the launch platform for my new book, the premiere of Season 3 of Thought Leaders and Game Changers podcast, and the kickoff of an International Tax and Investment Roadshow spanning Asia, the Middle East, Oceania, Europe, the US, and Canada.
Don’t miss this exciting opportunity to engage with thought leaders and innovators shaping the future of ESG investments.
Join us! Register here:
