Timeline
1700s
1800s
1900s and Later
John Wesley, who founded Methodism, urged his followers not to let their businesses harm the health of their neighbors (such as the leather industry and chemical manufacturing) and to avoid investing in industries considered religiously sinful, such as weapons, alcohol, tobacco, and gambling. This is one of the earliest business ethics principles aligned with ESG concepts, promoting social responsibility of companies. However, it is rooted in religious goodwill.
The United States was still a country of slavery and racial segregation. Many people accumulated great wealth through the slave trade. However, there was one religious group—the Quakers (Society of Friends)—that strictly prohibited participation in the slave trade. This devotion to social equality is also an important idea contained in ESG.
Socially responsible investing (SRI), which emerged in the 1960s, encouraged investors to avoid companies involved in harmful industries like tobacco and weapons due to social concerns, not because of religious beliefs.
In the 1980s, the total amount of ethically and socially responsible funds prohibiting investment in South Africa (due to its apartheid policies) reached $400 billion. This approach put pressure on South African companies, as they lost many sources of commercial financing. As a result, large corporations employing a significant number of Black South African workers were forced to sign a charter calling for the end of apartheid.
In the early 2000s, ESG became more formalized as investors and regulators started emphasizing sustainability. The United Nations' Principles for Responsible Investment (PRI), launched in 2006, played a major role in popularizing ESG frameworks worldwide.
In 1970, the first Earth Day led to the establishment of the United States Environmental Protection Agency and the enactment of the Clean Air Act, Clean Water Act, and Endangered Species Act.
In 1997, the Kyoto Protocol, an international treaty aimed at limiting greenhouse gas emissions in developed countries to curb global warming, was signed.
In 2015, the Paris Agreement was signed by 178 parties worldwide.
References
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