Understanding ESG Through Wharton, with a Turkish Lens
ESG: Numbers Beyond ProfitsWhen I first encountered the Wharton Global Youth Program’s new ESG resources, one phrase struck me: “Investing with purpose is no longer optional, it is essential.” The idea that companies should be evaluated not only by financial results, but also by how they treat the planet, their employees, and their stakeholders, resonated with me deeply. Growing up in Turkey, I have seen first-hand how business decisions—both responsible and irresponsible—can ripple through society. ESG (Environmental, Social, and Governance) offers a framework to analyze these decisions in a structured and global way.
Environmental ResponsibilityThe “E” in ESG focuses on sustainability and the environment. In Turkey, this has become especially urgent as our country balances economic growth with the realities of climate change. Borsa İstanbul’s Sustainability Index now tracks companies that commit to lowering their carbon footprint and increasing renewable energy usage. For instance, Tüpraş, one of Turkey’s largest industrial companies, has announced significant investment into green hydrogen and renewable energy sources. For me, analyzing these transitions is fascinating because it shows how global markets are reshaping local industries—and why investors today can no longer ignore environmental performance when making decisions.
Social ImpactThe “S” in ESG is about people. This is an area where I believe Turkish companies provide valuable case studies. Anadolu Efes, a leading beverage company, not only exports globally but also runs community projects that support farmers and promote responsible consumption. Similarly, the Philip Morris Sabancı joint venture emphasizes employee well-being and gender equality in its workforce reports. Wharton’s focus on the “human” dimension of ESG reminded me that social impact isn’t abstract—it’s about how policies affect workers’ families, how companies respond to crises, and how they include (or exclude) different voices in their strategies.
Governance and TransparencyFinally, the “G” in ESG centers on governance: transparency, accountability, and ethical leadership. Turkey has made progress with stronger Capital Markets Board (SPK) regulations on corporate governance. Public companies are now expected to disclose more about their decision-making and risk management. Yet, challenges remain—such as ensuring that independent board members can truly influence decisions. For a student like me, passionate about investment banking and financial markets, this is a powerful reminder that financial success cannot be separated from governance quality. Investors may profit in the short term, but weak governance almost always brings risks in the long run.
Why ESG Matters for the Next GenerationWhat makes ESG compelling is not only its ability to redefine investment strategies but also its ethical dimension. As a high school student exploring economics, finance, and data analysis, I see ESG as a bridge between numbers and values. It asks us: how do we measure success? For Wharton students and for myself, the answer must include sustainability, social responsibility, and governance.
In Turkey, where rapid growth sometimes overshadows sustainability, adopting ESG principles could transform both our markets and society. For me personally, it connects my classroom studies in macroeconomics and computer science with real-world applications. Whether it is analyzing the profitability of renewable energy or debating corporate responsibility at Model United Nations, ESG sharpens my ability to think critically about the role of business in society.
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