A strong stance on environmental, social and governance (ESG) concerns can create value in business, according to Tim Koller. 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.
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.