Effectively managing your company’s ESG performance allows you to unlock sustainable business value and helps to differentiate yourself from your competition. Incorporating ESG factors into day-to-day business processes supports long-term value creation.
A company’s interaction with the environment, regulators, and other stakeholders impacts upon its long-term competitiveness, reputation, and success. Performance with regards to ESG matters can determine whether or not a firm receives a business loan from the bank, whether it is given support from regulators or a fine, and whether or not it is successful in public procurement. These factors help attract the best talent and investors, and increasingly impact upon share price performance (for listed companies), cost of capital, and value creation potential.