The public and shareholders alike want to see companies prioritize their Environmental, Social and Governance (ESG) planning, so much so that it has become intrinsically tied to a company’s overall value. ESG issues are fast becoming a key component of what defines a company’s identity and stakeholders are viewing companies through that critical lens.

Many organizations are seeking to standardize ESG compliance as a metric in the same manner we have historically looked to profit margins or customer satisfaction. Updated policies—including new proposed rules by the SEC—will potentially set a standard requiring more disclosure around ESG performance and demonstration of ESG compliance, but it is still a moving goal line. Russia’s invasion of Ukraine has changed the global energy equation and with it, the meaning of green energy. One should expect more of these seismic shifts in the future.

Meeting heightened but shifting expectations is now a crucial part of the strategic considerations of many investors. In this context companies should view ESG expectations as a potential risk—and mitigate accordingly—but ultimately, they should see ESG as an opportunity for enhancing reputations and accelerating growth.