People Power: Recognizing the Missing Piece in Sustainability Indices

Abstract

Author(s): Moderato Paolo*

Sustainability indices have become instrumental in evaluating the environmental and governance performance of businesses worldwide. However, these indices often overlook a critical aspect that is essential for holistic sustainability: the human factor. This article explores the significance of incorporating "People Power" into sustainability indices and advocates for a paradigm shift towards a more comprehensive approach. By considering social indicators such as fair labor practices, employee well-being, diversity and inclusion, community engagement, human rights, and supply chain transparency, sustainability indices can offer a more nuanced and accurate assessment of a company's overall sustainability performance. Recognizing the missing piece in sustainability indices not only drives a more inclusive and ethical corporate culture but also fosters trust among stakeholders, ensuring a sustainable future that uplifts both people and the planet. This article underscores the urgency of recognizing the human dimension in sustainability indices and its potential to create positive, lasting change for the global community.

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