ESG is good for business

As we have commented on in the past, there is a difference between what is happening at the company operating level due to ESG versus the political football surrounding how the financial markets have packaged and sold “ESG” funds.

This article is not about ESG funds.  It is about the impact of ESG for companies, at the operational level.

Per this article:

 

• Companies that promote the importance of ESG have seen revenues rise 9.7% versus only 4.5% for those that do not support ESG. That’s a 2.15x gap.

 

• Companies that promote the importance of ESG have seen profits rise 9.1% versus only 3.7% for those that do not support ESG. That’s a 2.46x gap.

 

• Companies that promote the importance of ESG have enjoyed 9.9% headcount growth versus only 4.8% headcount growth for companies that do not support ESG. That’s a 2.1x gap.

 

We’ll let the politicians debate the value of how the financial markets create, audit and manage, ESG funds on Wall Street. 

But on Main Street, where companies live and die, incorporating ESG into your operation helps you grow twice as fast as your peers that do not have ESG in their operation.

If you would like to talk about this, please contact us.