By
Borsgade
In his recent blog post “The Siren Song of Sustainability,” NYU professor Aswath Damodaran critiques the concept of sustainability, particularly its connection to ESG (Environmental, Social, and Governance) practices. He describes ESG as an empty acronym, filled with hypocrisy and marketed with misleading promises.
Aswath explores different interpretations of sustainability—planet sustainability, product sustainability, and corporate sustainability—highlighting how the term has been adopted by academia, businesses, and governments. He argues that many companies and institutions have jumped on the sustainability bandwagon for marketing purposes, often without meaningful impact. He is particularly critical of how corporate sustainability is used to promote long-term business strategies under the guise of social responsibility, while often serving as a tool for greenwashing.
Aswath concludes by pointing out that both ESG and sustainability are opaque and prone to manipulation. He argues that these concepts have become more about disclosures than real action and warns that pursuing sustainability will require genuine sacrifices in profitability, contrary to the promises made by its advocates. He calls for transparency about the costs involved.
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