Stakeholder Capitalism and ESG as Tools for Sustainable Long-Term Value Creation

Harvard Law published a paper outlining how stakeholder capitalism and ESG are fundamentally frameworks to enhance the sustainable long-term value of a corporation. Time and again, stakeholder and ESG considerations have driven positive societal outcomes (climate and DEI being among the examples). But stakeholder capitalism and ESG, as we and many Investors understand them, do not lead with a political or moral agenda. The north star of stakeholder capitalism and ESG is driving sustainable long-term value creation. “Stakeholder capitalism recognizes that corporations do not exist in a vacuum, but rather each relies on a multitude of stakeholder contributions and interests from employees, customers, suppliers, communities and, more broadly, society and the environment at large in order to operate effectively and create value.