The G20 role towards an internationally recognized ESG framework

The ESG (environment, social, governance) criteria are becoming mainstream in the global investment landscape in the aftermath of the pandemic shock. The transition towards the ESG principles involves risks that have to do with the significant differentiation across countries in terms of values and preparedness to incorporate ESG standards. Developing economies will likely find it more challenging to compete with advanced economies in the speed of ESG transformation.

The G20 should promote a harmonized and transparent development of ESG standards, in order to reconcile developed and developing countries interests, support investors and companies’ decisions, and eventually ensure the expected positive impact of ESG policies on societal and environmental issues.

How to coordinate the implementation of ESG principles across countries with different levels of preparedness for green transformation? How to manage the differences and avoid the emergence of new dividing lines? What could be the role of the Italian G20 Presidency? The T20 Roundtable co-promoted by IAI and Valdai discussed these pressing global issues and presented proposals raised by several leading experts in the context of the T20 Italy process.