We identified positive correlations between ESG performance and operational efficiencies, stock performance and lower cost of capital.
When it comes to ESG reporting, in most cases, there is no clear understanding of what it is and what standards to apply. And more importantly, businesses have very vague knowledge about its actual economic benefits.
Therefore, even if a business has realised that it is probably a good idea to start its ESG journey, sustainability specialists struggle to convince decision-makers to allocate necessary resources.
We have investigated the matter and found several reputable sources explaining the actual economic benefits of ESG reporting. In particular, we identified positive correlations between ESG performance and operational efficiencies, stock performance and lower cost of capital.
