Companies that have embraced the ESG (environmental, social and governance) agenda in recent years have enjoyed a significant boost to the bottom line as well as wider strategic benefits, according to new research by Moore Global.
The study spanning eight major economies identified opportunities that are potentially game-changing for businesses that have faced the debilitating effects of Covid, supply chain disruption, an energy crisis and chronic staff shortages.
The Centre for Economics and Business Research (Cebr), which conducted the research on behalf of Moore Global, calculated the potential ESG-related revenue uplift for the 1,262 large businesses we spoke to at up to $4 trillion – or $45 million for every firm.
Profits also rose faster for ESG adopters and there are other key business benefits as well: better customer retention and brand impact; easier access to capital and fewer issues hiring staff.
Overall, 80 percent of business leaders said ESG has become more important over the last three years, with Covid being the biggest driver of change.
Across the world, only six percent of companies did not have staff involved in ESG in some way.
ESG has changed the business landscape with regulators, lenders and investors all pressing for more transparency on diversity and sustainability. It poses a new set of questions for business leaders – and Moore Global has the answers.
Read the report here.