From reducing dangerous fossil fuel emissions to embracing reductions in harmful materials while advocating renewable and recyclable options, organizations are appropriately applying the E in ESG. For those that fail to heed the warning, any number of challenges will undoubtedly arise, such as regulatory fines, civil and criminal prosecution, reputational damage, and more. Changing weather patterns will no doubt put even more stress on organizations to become environmentally aware of their global footprint. What Does it Mean to be Environmentally Conscious? For organizations seeking to embrace the E in ESG, it should mean the following: Devising and implementing broad-based initiatives that truly drive action on climate change for generating positive environmental outcomes for all. Effectively managing environmental risks, including climate-related risks, by implementing proven measures for minimizing one’s carbon footprint on the planet. Minimizing, to the greatest degree possible, one’s environmental impact on all physical operations. Strategically partnering with organizations for helping advance environmental sustainability. Bottom line, organizations that fail to consider the effects of their policies and practices on the environment may be exposed to greater financial risk, ultimately leading to governmental or regulatory sanctions, criminal prosecution and reputational damage, all of which risk harming shareholder value. Why ESG? Attention to ESG issues is becoming critical to long-term competitive success. Major institutional investors are making it clear that they expect the companies they hold to take a proactive approach to ESG. Millennials, and even younger generations, care deeply that the companies they work for (and the businesses they support) embrace values that are aligned with their own. Sustainable/impact investing is actively growing at double-digit rates. Companies that proactively address ESG issues can set the bar for an entire industry.