Any fan of the Edinburgh band The Exploited will remember its debut album, Punks Not Dead.

When I first saw the cover (not mine, a friend had it), I remember thinking two things. Firstly, there’s missing an apostrophe; secondly, it kind of was dead.

More accurately, it had moved on. By then, punk music and the behaviour of some of its fans was no longer on the evening news, portrayed as a shocking social phenomenon. The genre had evolved into many subsets and spread its influence more broadly.

And there’s something sort of similar happening with ESG. Having shone a light on the ESG backlash and corporate backtracking on use of the term over the past year or so - including an assertion earlier this month that ESG is very much alive and kicking - the fact now seems to be that ESG as we knew it has changed markedly, as it grows up a bit. Probably for good.

Anarchy hits governance

This week’s main ESG story is about its progressive demise. It details how investor interest in it has dropped for the third year in a row, with FT Adviser citing investment performance concerns and that “more investors pay attention to the 'G' in ESG these days”.

That level of interest has been on the wane consistently, and while the story centres on a survey of private investors rather than institutions, it nonetheless highlights that ESG as an objective stakeholder value model and guiding light for investment has rather passed its sell-by date.

But as I’ve pointed out here before, the acronym may have been poisoned but the drive for sustainable finance – effectively, a reframed take on what ESG was supposed to deliver anyway – remains buoyant.

Companies may continue to talk about ESG programmes and have ESG teams, but some may rename them. Fund labelling is already under the regulatory microscope and the financial services sector will likely shy away from the term even more.

Put a pin in ESG

You may have noticed that this column has been renamed the Sustainability News Review rather than the ESG Review, which reflects the overall state of play.

But in the world of sustainable change, the value it created and the advantages for all stakeholders of companies being better businesses, there is still significant momentum and newsflow.

The Times wrote about an Oxford-based start-up with a sustainable jet field breakthrough.

Political pressure is growing to ensure that new homes meet far stricter low-carbon standards, according to The Guardian.

Fold-up specialist Brompton announced a new range of refurbished bikes this week. Yes, recycled cycles.

Pressure continues to grow on agriculture and industry to reduce water usage and pollution, said the Financial Times.

Investment appetite for things badged ESG may be shrinking, but companies continue to announce change initiatives and investments, and policy and politicians continue to grapple with the major challenges and opportunities that the environment, society and business governance face.

And anyway, the UK public understands the term responsible business rather than ESG anyway, according to this report.

Sustainability news will continue to flow, driven by the movement towards more responsible business. Meanwhile, I’m off to rip the sleeves off my denim jacket, spike my hair and stick a safety pin in my nose.