Sustainable investing has been part of the mainstream conversation for some time now. ESG is a fixture in pitch decks, investor updates, and annual reports. But with its widespread adoption has come an inevitable side effect: noise. ESG is everywhere—and not all of it is meaningful. Greenwashing isn’t always deliberate. Often, it’s the result of good intentions paired with unclear execution. Companies want to show they care, but without a clear roadmap or accountability, many ESG claims end up being more performative than practical. And when that happens, it erodes trust—among investors, stakeholders, and the public at large. So how do we cut through the spin and identify what’s real?
1. Prioritize Significance Over Generality
Significance is key. ESG isn’t a one-size-fits-all checklist—it has to be grounded in the realities of a specific business. What’s critical for a logistics company will differ from what matters for a fintech firm. If a company’s ESG claims feel generic or disconnected from its core operations, that’s usually a sign they haven’t gone deep enough.
2. Look for Strategy, Not Just Statements
Sustainability shouldn’t live in a separate slide deck. The most credible companies weave ESG into their business strategy—into how they make decisions, manage risks, and build value over the long term. When ESG is tied to leadership incentives, embedded in planning, and reflected in operations, you know it’s more than marketing.
3. Ask Who’s Accountable—and for What
Good intentions are not enough. For ESG commitments to be credible, they require clear ownership, measurable targets, and real systems of accountability. Who is responsible for delivering on these outcomes at the executive and board level? What are the benchmarks, and is progress independently verified? Authentic ESG strategies are transparent not only about what they’re achieving, but also about where they’re falling short. Accountability also means being open about what isn’t working. ESG progress is rarely linear, and companies willing to acknowledge setbacks—and adjust course—tend to earn more trust than those that focus only on positive headlines. Authenticity shows up in the details: who’s in charge, what they’re measured against, and how candid they are about the journey.
4. Assess Incentive Alignment
Ambitious goals mean little without the incentives to match. One of the clearest signals of ESG commitment is how performance is rewarded. Are executives incentivized to deliver long-term, sustainable outcomes—or are they still evaluated primarily on short-term financial returns? In authentic ESG strategies, sustainability isn’t treated as a side concern; it’s built into how leaders are held accountable. When compensation structures reflect broader stakeholder outcomes—like emissions reductions, workforce equity, or supply chain ethics—it becomes clear that sustainability isn’t just encouraged. It’s expected.
5. Go Beyond the Ratings
Third-party ESG scores can be helpful, but they’re often inconsistent, opaque, and backward-looking. Meaningful diligence requires deeper engagement—speaking to stakeholders, understanding local impacts, and asking harder questions. Real ESG work embraces complexity. It acknowledges trade-offs and seeks continuous improvement.
Ultimately, distinguishing genuine ESG from marketing spin is about more than just scrutiny. It requires a mindset shift—from compliance to curiosity, from signals to systems. It’s about tracing the connection between intention, action, and outcome.
What gives me hope is what I see in the classroom. Students, who will ultimately be the next generation of leaders and investors, are not just talking about sustainability—they’re signing up for the courses, engaging with the material, and challenging the frameworks. They’re asking sharper questions, pushing past surface-level narratives, and thinking critically about the role of capital in shaping the world. And the companies we use as case studies—those that stand up to this level of examination—are the ones that truly care. They’re not perfect, but they’re transparent, intentional, and serious about doing better.
ESG, when practiced with integrity, isn’t about chasing perfection. It’s about meaningful, measurable progress. And that progress should never be seen as a trade-off with profitability. In fact, the most compelling examples we see—both in the classroom and in the market—show that real advancements on ESG issues are not only compatible with strong financial performance but often a driver of it. Addressing climate risk, improving workforce well-being, strengthening governance, and enhancing supply chain resilience are all long-term value creators.
True progress on ESG is, at its core, about building companies that are more adaptive, more trusted, and better positioned to thrive in a changing world. This resilience translates into reduced risk, stronger stakeholder relationships, and competitive advantage—all of which compound into sustained shareholder returns. Put simply: aligning capital with the future we want to create is not an act of philanthropy. It is sound business strategy. The discipline, transparency, and courage required to advance ESG goals are the same qualities that underpin enduring value creation. Companies that understand this aren’t just preparing for the future—they’re actively shaping it.