Theme timeline
What are the origins of ESG, and what does the future hold?
Credit: Bert van Dijk/Getty images.
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More than three decades have passed since the Intergovernmental Panel on Climate Change was established. Governments have since signed landmark agreements such as the Kyoto Protocol and Paris Agreement, committing themselves to reduce GHG emissions.
Corporate interest in ESG has risen steadily but took off rapidly after the 2015 Paris Agreement. Businesses have since made ESG a part of their reporting, marketing, and investment voluntarily.
ESG, especially the ‘E’ component, is now shifting from a voluntary regime to a mandatory one, with a host of new laws in the pipeline, including mandatory reporting, carbon pricing, and carbon import fees, as well as more state support and investment for clean energy technologies.
1859
Irish scientist John Tyndall demonstrated that some gases blocked the escape of infrared radiation.
1896
Svante Arrhenius published the first calculation of global warming from human-caused CO2 emissions.
1938
British steam engineer Guy Callendar discovered global temperatures have risen 0.3C over the previous 50 years.
1953
Howard Bowen coined the term ‘corporate social responsibility’ in his book, Social Responsibilities of the Businessman.
1958
Atmospheric CO2 levels were measured for the first time.
1988
Intergovernmental Panel on Climate Change (IPCC) was established.
1992
Nations agreed on the UN Framework Convention on Climate Change.
1997
The Kyoto Protocol was adopted, committing signatories to agreed emissions reductions.
1999
The Dow Jones launched the first sustainability market index.
2000
BP underwent its ill-fated ‘Beyond Petroleum’ rebrand.
2004
The term ‘ESG’ was coined by the UN Global Compact.
2005
The EU launched ETS 1, the world's first international emissions trading system.
2009
China overtook the US as the world’s largest GHG emitter.
2015
The Science Based Targets Initiative (SBTi) was founded by the CDP, UNGC, WRI, and WWF.
2015
Volkswagen was caught cheating on its emissions tests.
2016
175 countries signed the Paris Agreement. The UN launched its 17 Sustainable Development Goals (SDGs).
2016
The first global market-based carbon offset system (CORSIA) was adopted by the airline industry.
2017
The Task Force on Climate-Related Financial Disclosures (TCFD) created its first draft reporting standards.
2017
The US left the Paris Agreement.
2021
The EU’s Sustainable Finance Disclosure Regulation (SFDR) came into effect.
2021
A relatively unknown investor, Engine No.1, defeated Exxon in a shareholder voting battle over director appointments.
2021
The US rejoined the Paris Agreement.
2021
The COP26 Glasgow agreement kept the Paris target of 1.5C alive.
2022
The EU SFDR and green taxonomy came into force, setting sustainability reporting requirements for fund managers.
2022
Russia invaded Ukraine, and gas prices soared to record highs in the following months.
2022
President Biden’s Inflation Reduction Act was passed.
2022
DWS and Deutsche Bank offices were raided over greenwashing allegations.
2022
Goldman Sachs and BNY Mellon were fined for greenwashing.
2022
Attendees of COP27 reached an agreement on a loss and damage fund.
2023
The EU responded to the US IRA by proposing the Net Zero Industry Act.
2023
The US SEC and International Sustainability Standards Board will produce final drafts of reporting standards.
2023
The first reporting year for sectors covered by the EU CBAM.
2024
TCFD reporting will become mandatory for large UK companies.
2024
The EU maritime sector will be brought under the EU’s ETS.
2025
The EU’s deforestation rules will take effect.
2025
This will be the likely first reporting year for ISSB reporting standards.
2026
Import fees for the world’s first major carbon border tax (CBAM) will begin.
2027
EU rules on battery recycling, labeling, and passporting will take effect.
2027
Earliest start year for road transport and buildings to be covered by the EU ETS.
2030
The UK’s ban on the sale of new petrol and diesel cars will take effect.
2030
Canada’s target year for producing zero plastic waste.
2034
The EU CBAM and ETS 2 will be fully phased in.
2035
The EU ban on sales of internal combustion engine cars will take effect.
2035
The US government is to end its own purchases of gas-powered vehicles.
2050
The EU, UK, and US target date for achieving net zero GHG emissions.
2060
China’s target date for achieving net zero GHG emissions.
2070
India’s target date for achieving net zero GHG emissions.
Source: GlobalData
GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.
GlobalData’s Thematic Intelligence uses proprietary data, research, and analysis to provide a forward-looking perspective on the key themes that will shape the future of the world’s largest industries and the organisations within them.
