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Planet, People, Profit: The 3Ps of the triple bottom line approach, which form the core of sustainable business operations, are more intertwined and inseparable today than they ever have been in the past. Natural calamities, global warming and governance issues are impacting reputations and businesses, along with heightened shareholder and consumer activism, and increased regulatory scrutiny. As a result, enterprises are compelled to take a hard look at the way they conduct their businesses and make sweeping changes in a bid to future-proof themselves.
An example of the way in which the landscape is changing can be found in the Indian banking system. The Reserve Bank of India, recently proposed integrating climate-related risks into its practice of monitoring the stability of the financial system and modelling climate risk scenarios to identify vulnerabilities. This could imply that banks and financial institutions would need to chalk out new frameworks, imbibe climate change-related concerns into their credit decisions and risk management functions.
Globally, communities and corporations are re-evaluating priorities and redefining purpose at individual and collective levels. There has been a conscious crossover to a value addition approach, which goes beyond profits and pay cheques.
Champions of climate change, software engineers going back to their villages to start organic farming, start-up founders obsessed with leveraging technology to solve the problem of access to financial services, and teachers imparting education to underprivileged students are the real-life heroes of today. To them, 'why we do' matters as much as what we do.
Consequently, ESG (environmental awareness, social responsibility and good governance) have become the focal points of the lens through which governments, corporates and individuals are looking at their day-to-day jobs and decision-making.