Published by Bain & Company and EcoVadis, the study covers 80,000 private companies and a further 20,000 listed companies. It was global, with results tracked from businesses in an array of countries and sectors.
While not every business working to improve its environmental and social impact recorded revenue growth and earnings, the majority did. And, in all cases, the study found “no strong negative correlation”.
The study highlights four strongly positive correlations between ESG and profitability. One of these is that businesses with the most satisfied employees have three-year revenue growth up to 6% above those in their sectors with the least satisfied employees. 2019 to 2021 is the three-year period assessed. Additionally, at firms with the least satisfied employees, the average net income margin was 10%. At firms with the most satisfied staff, this increases to 16%.
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