As social purpose rises in popularity, some are taking a closer look

There has been a lot of effort to link purpose and profit in recent years, and PR firms have jumped in with both feet. PRWeek started a “Purpose Awards” program, and environmental, social and governance issues (ESG) have come to define a new business model.

Or have they?

ESG as a term took off with investors, particularly with BlackRock, the giant investment group that made waves with CEO Larry Fink’s letters about the need to change business models. BlackRock’s ideas were later adapted by the Business Roundtable, which would commit to “Stakeholder Capitalism”—as if an economy designed to extract profit for half a century could suddenly care about something else, too.

Yet, a former leader from BlackRock is sounding the alarm about the models and industry lingo that were popularized by BlackRock. In a three-part essay published on Medium, Tariq Fancy, BlackRock’s ex-CIO for Sustainable Investing, argues that “ESG” is more of a marketing ploy than a blueprint for a sustainable future.