THINKING IN DECADES: ESG AND THE ART OF ENDURANCE

Sustainability and ESG (Environmental, Social, and Governance) are no longer optional doctrines or the “flavour of the month” fashionable topics.

- By Rajesh Nair, Partner, Ernst & Young LLP

They now form the backbone of thoughtful business strategy—an imperative for long-term survival, ethical conduct, and resilience. As Charlie Munger once said, “It is remarkable how much long-term advantage we’ve gotten by trying to be consistently not stupid, instead of trying to be very intelligent”. That remark captures the essence of sustainable thinking: success depends not merely on brilliance but on discipline—doing what ensures endurance rather than chasing immediate gain.

The Long-Term Lens: Wisdom from Munger

Munger believed deeply in patience and integrity as the cornerstones of business judgment. “The big money is not in the buying or the selling, but in the waiting”. His worldview aligns seamlessly with ESG philosophy, which is about “waiting right”—building businesses that appreciate slowly but steadily through prudence, transparency, and fairness. By emphasising that “reputation and integrity are your most valuable assets—and can be lost in a heartbeat”, Munger calls out the moral dimension of enterprise. ESG-driven governance isn’t a fad; it is reinforcement of this timeless truth that reputation is capital.

Sustainability thinking, much like Munger’s latticework of mental models, requires a multidisciplinary view. He urged leaders to “recognise that real-world problems don’t neatly lie within territorial boundaries” and that “a multidisciplinary attitude is required if maturity is to be effective”. Environmental responsibility, social equity, and sound governance are interconnected—not departmental checkboxes but systems dynamics. Businesses that address climate, community, and conduct holistically form antifragile institutions able to thrive amid complexity.

Decision-Making for a Future That Lasts: Kahneman’s Perspective