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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EcoVadis is a purpose-driven company whose mission is to provide the world's most trusted business sustainability ratings. Businesses of all sizes rely on EcoVadis’ expert intelligence and evidence-based ratings to manage risk and compliance, drive decarbonization, and improve the sustainability performance of their business and value chain. Its AI-powered risk mapping, actionable scorecards, benchmarks, carbon action tools, and insights guide a resilience and improvement journey for environmental, social and ethical practices across 200 industry categories and 175 countries.
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