The Origin Story of ESG

The incorporation of sustainability aspects and ESG (Environment, Social, Governance) into economic decisions has a long history, ranging from socially responsible investments (SRI) and boycott movements to the current dominance of climate change. This article outlines the emergence and development of ESG from its beginnings in religious groups of the eighteenth century, through the growing influence of social and political movements in the twentieth century, to the establishment of ESG as a fundamental concept in modern business practices. The analysis focuses particularly on the transition from a pure focus on shareholder value to a broader commitment to Corporate Social Responsibility (CSR), demonstrating that ESG is an already established and increasingly important dimension of capital market decisions.