Why are #ESG investments now worth over US$35 trillion? Because businesses now realise that ESG investments directly tie to a company's financial performance — and long-term success. Discover the 4 reasons why it pays to #BeBold and do good. #BusinessTransformation #ManagementConsulting

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HOW ESG INVESTMENTS CAN CREATE
MORE VALUE FOR YOUR BUSINESS
IT PAYS TO
DO
DOGOOD
GOOD
IT PAYS TO

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Regardless of industry, businesses are deeply intertwined
with issues related to environmental, social and
governance (ESG) concerns.
That's why it's necessary to be proactive when
it comes to ESG — and why it's no longer just a PR tactic.
01.

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Global sustainable investment opped $35.3 trillion
at the start of 2020 — a 35% increase from 2018.
Investors and executives now realise that investments in
ESG will contribute to a company's financial importance
and long-term success.
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03.
According to a review of over 1,000 peer-reviewed journal
articles published over the last five years by
NYU Stern School of Business:
ESG investment is a risk management
strategy, providing insurance-like effects
to business volatility
Risk management is the dominant factor
between sustainability and financial
performance
Let's look at this in detail.
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1. ESG UNLOCKS A COMPETITIVE
ADVANTAGE
04.
Companies that invest in ESG initiatives — such as
improving workplace conditions and providing
better healthcare — unlock more
strategic opportunities and strengthens the
company's brand. It’s a valuable variable in a
marketplace that rewards good business practices
with brand loyalty.

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2. ESG INVESTMENTS BRING "STICKIER" INVESTORS
05.
ESG investment is a long-term risk management
strategy that protects against business volatility.
Investors like this, because it ensures long-term
value on their investments over a longer
time period.

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3. ESG INITIATIVES ATTRACT BETTER TALENT
ESG initiatives attract talent who are passionate about the
company that they work for, and the values associated with
that company. This can be a valuable recruitment tool that
strengthens the brand of the company and improves the
overall productivity of the workforce.

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07.
4. ESG INITIATIVES BRING BETTER RETURNS
ESG elements that prioritise sustainability drive
financial results and generate superior long-term
financial performance.
A 2017 study by Nordea Equity Research, reported
that companies with the highest ESG ratings between
2012 and 2015 outperformed the lowest-rated firms
by as much as 40%.
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08.
The bottom line? It pays to do good.
Better corporate sustainability and a more robust
investment in ESG initiatives translate into better
corporate financial performance.
When companies incorporate ESG elements into
their long-term investment strategy, they can
increase financial returns, mitigate risks, and
develop greater resilience.

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