With businesses and stakeholders taking an increased interest in the opportunities brought by focusing on environmental and social impact and the current regulatory landscape placing emphasis on sustainable investing and disclosure of Environmental, Social and Governance (ESG) measures, companies and investors are finding it more important to assess ESG criteria.
Companies that choose to focus on ESG criteria must determine their expectations and goals when it comes to factors like sustainability and transparency, and investors who define ESG objectives look to build a portfolio of companies that are working to meet certain criteria in similar areas.
How ESG impacts you
Better management of resources and investment can ultimately help companies increase their bottom line, enabling them to focus on sustainability and long-term returns. Improved ESG can also contribute to reduced costs for business operations, including manufacturing processes, packaging processes, power, and waste disposal. Further, an ESG focus can help create increased productivity, which includes motivation amongst the workforce, higher employee retention and attraction of top candidates for recruitment.