Headline:
“Why ESG Issues Now Belong in the Boardroom: The LinkedIn Post That Explained It Best”

Subheadline:
A powerful breakdown of how sustainability metrics became financial material—and why executives can no longer afford to treat environmental, social, and governance as “soft data.”

Table of Contents

Introduction (Lede Paragraph)

“What used to be dismissed as ‘non-financial’ is now deeply strategic.”
That’s the bold insight shared by Raja Shazrin Shah Raja Ehsan Shah in a recent LinkedIn post spotlighting the Harvard Business School paper “How ESG Issues Became Financially Material to Corporations and Their Investors.”

The post resonated not because it was filled with advocacy—but because it offered a practical framework for understanding why ESG matters now more than ever to boards, CFOs, and decision-makers.

Background & Context

Raja Shazrin Shah is a policy consultant and environmental economist known for demystifying the intersection of climate data, finance, and global regulation. His posts frequently synthesize complex research for a wide business audience—from policymakers to private sector strategists.

The article he shared, authored by Harvard’s David Freiberg, Jan Rieger, and George Serafeim, is a landmark study. It answers one of the most hotly debated questions in modern business: How did ESG data become critical to a company’s bottom line?

This post arrives at a pivotal time when global reporting standards, including the ISSB and EU CSRD, are transforming how companies approach ESG materiality.

Main Takeaways / Observations

1. Materiality Isn’t Just About Risk—It’s Now a Strategy Tool

The post recaps the authors’ key finding: that ESG data has become financially relevant not because it’s moral—but because it affects decision-making, pricing, and competitive advantage.

Companies that understand which ESG factors shape investor behavior or customer loyalty are more likely to survive—and grow.

2. You Can Now Track Sustainability Like You Track EBITDA

The shift in thinking is analytical, not activist. The report shows how frameworks are evolving to define quantifiable ESG thresholds, linking them to tangible metrics like emissions reduction pathways, social capital, and resource efficiency.

In short, it’s not about vague values—it’s about decision-grade data.

3. Boards Are the New Frontline for Sustainability Integration

The post makes it clear: sustainability isn’t just a “CSR” issue anymore. It’s now being translated into board-level governance models, budget forecasts, and strategic positioning.

That insight echoes a broader trend we’ve seen in legal work—where ESG metrics are written directly into shareholder agreements, financing conditions, and even M&A risk evaluations.

Community Reaction (Optional)

While the post didn’t have a flood of comments, its clarity and reference to top-tier academic research earned notable engagement from impact consultants, ESG officers, and data governance professionals.

The document’s inclusion and visual cue (screenshots from the paper) helped the post stand out and encouraged others to download the full report.

Our Perspective / Analysis

From a legal and contract advisory standpoint, this post affirms a major shift: ESG metrics now influence enforceable obligations. We increasingly advise clients to:

Define ESG-linked KPIs in joint venture contracts or executive bonus clauses.
Align materiality maps with jurisdictional reporting requirements (e.g., SFDR, CSRD).
Anticipate how ESG disclosures may affect risk disclosures in shareholder reports or IPO filings.

Shah’s post serves as a real-time briefing for CEOs, general counsel, and investors alike.

Call to Reflection or Action

If you’re still treating ESG as a “soft” conversation, you’re missing where the financial world has already gone.

So ask yourself:
Are your contracts and board decisions aligned with what’s actually material in 2025?
Because investors already think they are.

Source: Click Here

Why ESG Metrics Now Matter to Your Bottom Line: Lessons from Harvard’s Landmark Report