ESG: What Bureaucrats and Buyers Want but the World Doesn’t Need ESG, or Environmental, Social, and Governance, has become a buzzword in the business world. Companies are expected to prioritize ESG factors in their decision-making processes, and investors are increasingly looking for ESG-friendly investments. However, the reality is that ESG is often more about optics than actual impact. Bureaucrats and buyers want companies to prioritize ESG because it makes them look good. Governments can tout their commitment to sustainability and social responsibility, while buyers can feel good about their purchases. However, the truth is that ESG is often more about perception than reality. For example, a company may tout its commitment to reducing its carbon footprint, but in reality, it may only be making small, incremental changes that have little impact on the environment. Similarly, a company may claim to prioritize social responsibility, but in reality, it may only be making token gestures that do little to address the root causes of social issues. The problem with ESG is that it often focuses on the symptoms of problems rather than the root causes. For example, a company may prioritize diversity and inclusion, but if it doesn’t address the systemic issues that lead to inequality, its efforts will be largely ineffective. Similarly, a company may prioritize reducing its carbon footprint, but if it doesn’t address the root causes of climate change, such as the use of fossil fuels, its efforts will be largely symbolic. ESG is also often used as a marketing tool. Companies may tout their ESG credentials to attract investors and customers, but in reality, their commitment to ESG may be superficial. For example, a company may claim to prioritize sustainability, but if it continues to engage in environmentally harmful practices, its commitment to sustainability is questionable. In conclusion, ESG is often more about optics than actual impact. Bureaucrats and buyers want companies to prioritize ESG because it makes them look good, but the reality is that ESG often focuses on the symptoms of problems rather than the root causes. Companies need to prioritize real, substantive change rather than superficial gestures that do little to address the world’s most pressing issues.