Given we have to ask ChatGPT about everything now, we went ahead and asked why it thought ESG matters to businesses. Chat GPT agrees. Tracking ESG is becoming increasingly important as investors, customers, and regulators place greater emphasis on sustainability and corporate responsibility.  Here is the response. Not too bad, right?

Tracking environmental, social, and governance (ESG) metrics is important for large companies for several reasons. Firstly, ESG issues can have a significant impact on a company's financial performance. For example, a company that fails to adequately address environmental risks may face fines or penalties, while a company with poor governance practices may struggle to attract and retain top talent. Additionally, consumers and investors are increasingly interested in investing in companies that prioritize ESG issues, and companies that demonstrate strong ESG performance may be able to gain a competitive advantage in the marketplace.

Secondly, tracking ESG metrics can help companies identify and manage risks. Environmental risks, such as climate change, can have a significant impact on a company's operations and supply chain. Social risks, such as human rights violations, can damage a company's reputation and lead to boycotts or divestment. By tracking ESG metrics, companies can identify potential risks and develop strategies to mitigate them.

Finally, tracking ESG metrics can help companies identify opportunities for innovation and growth. For example, a company that prioritizes environmental sustainability may be able to develop new products or services that reduce its carbon footprint and capture more market share. Additionally, companies that prioritize social issues, such as diversity and inclusion, may be able to attract and retain top talent and build stronger community relations. Overall, tracking ESG metrics can help companies improve their financial performance, manage risks, and identify opportunities for growth and innovation for long term value creation.