A strong stance on environmental, social and governance (ESG) concerns can create value in business, according to McKinsey. A good ESG approach can build top-line growth by generating trust with authorities and consumers, which also means fewer regulatory and legal interventions. Furthermore, ESG considerations can substantially reduce operating costs by efficient resource and energy usage, while investment in sustainable assets can also prove profitable, as they are unlikely to become stranded investments in a shifting regulatory environment. The report is based on the results of an online survey conducted among 1,000 senior executives from around the world.
A strong stance on environmental, social and governance (ESG) concerns can create value in business, according to McKinsey. A good ESG approach can build top-line growth by generating trust with authorities and consumers, which also means fewer regulatory and legal interventions. Furthermore, ESG considerations can substantially reduce operating costs by efficient resource and energy usage, while investment in sustainable assets can also prove profitable, as they are unlikely to become stranded investments in a shifting regulatory environment. Additionally, a positive ESG proposition is a tool for attracting and retaining a high-performance workforce, while employee satisfaction correlates with higher shareholder returns.