Per this McKinsey study, companies that have a Triple Play (Growth + Profit + Sustainability) dramatically outperform their peers on Total Shareholder Return (TSR).
- 36% of companies that lagged on sustainability/ESG showed negative growth; while 0% of the Triple Play companies showed negative growth
- 19% of the companies that lagged on sustainability/ESG grew by more than 10%; but 53% of the Triple Play companies grew by more than 10%
- Having the Triple Play of Growth + Profit + Sustainability delivers 7 points in TSR versus peers. That’s not 7%, it is 7 points – ie, a 12% TSR versus a 5% TSR. In most cases, that 7 points is more than double the competition.
- Sustainability/ESG will not save a flawed company; but it will help a company perform better
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