Private Companies Shouldn’t Neglect ESG

Per this article mostly focused on public companies:

–          If your company is not moving forward on things like the environment, you will become uninvestable in certain parts of the investor universe

–          9 out of 10 S&P 500 companies now have a sustainability report

–          Reporting has expanded to include ESG

–          Prediction that Wall Street research will include ESG scores within 12 months

–          Strong ESG performance makes a company more attractive to consumers and employees

–          Strong ESG performance can reduce cost of capital

–          Strong ESG performance can improve operations and valuation

Then, when we move from public to private companies, we find:

–          Consumers are now also expecting ESG from private companies

–          Private companies are seeing that ESG improves valuation

–          It makes the private company more attractive to lenders/investors/buyers

–          It makes the private company more attractive to employees

–          It has become a critical piece to going public

–        Market perception is that the smarter, better-run, private companies have sustainability and ESG programs in place; positively influencing brand image and growth versus competitor who do not have valid sustainability and ESG programs in place

If you decide to pursue an ESG program as part of your overall sustainability program, make sure the two intersect and both follow globally-accepted standards.  Use a platform built for both.

The Edenark Group ISO 14001 program is the world’s premier environmental sustainability certification program and can help you develop an ESP program as part of becoming certified sustainable and carbon neutral.