ESG Adoption & benefits

• According to a 2020 survey by BlackRock, 70% of global investors consider ESG factors when making investment decisions.
• A 2020 report by MSCI found that the number of companies with strong ESG practices has grown significantly in recent years, with over 7,000 companies rated as having high ESG performance in 2020.
• In 2021, the UN reported that over 1,000 companies globally have made commitments to align their business strategies with the 17 Sustainable Development Goals.
• According to a 2020 report by the Global Sustainable Investment Alliance, sustainable investments have grown by 33% in the past two years, reaching over $30 trillion in AUM globally.

These statistics provide a general indication of the increasing adoption of ESG practices and investment globally.

Benefits to business for adopting ESG

There are several benefits for businesses that adopt ESG (Environmental, Social, and Governance) practices, some of which include:

• Improved reputation: Companies that prioritize ESG issues are often seen as responsible and more trustworthy by consumers, investors, and other stakeholders.
• Increased brand loyalty: Adopting ESG practices can improve customer satisfaction and lead to increased brand loyalty, which can translate into increased sales and profits.
• Improved risk management: Integrating ESG considerations into business operations can help companies identify and mitigate potential risks, such as reputational damage, supply chain disruptions, and regulatory fines.
• Increased competitiveness: Companies that prioritize ESG issues can gain a competitive advantage by attracting more customers, investors, and talent, as well as reducing costs through sustainability-focused initiatives.
• Better financial performance: Research has shown a positive correlation between companies with strong ESG practices and their financial performance, including higher stock price stability and better earnings.

Adopting ESG practices can bring multiple benefits to a business, from improving its reputation to enhancing financial performance, making it a win-win for companies and stakeholders alike.