Private sector leaders are starting to advocate for the transition to a stakeholder-based business model, recognizing sustainability and organizational performance aren’t mutually exclusive. And investors are realizing EBITA, EPS and CFFO aren’t the only measures of success, with ESG metrics being just as important when evaluating companies:
- 88% of studies found companies adhering to social or environmental standards showed better operational performance, with 80% showing a positive impact on stock performance.
- Sustainably minded shoppers will spend $150 billion on sustainable products by next year. That’s $14-22 billion more compared to prior years, pointing to new sales opportunities for businesses that prioritize sustainability in product development.
- Sustainable supply chain practices reduce costs by 9-16% and create a 15-30% increase in brand value. 73% of CEOS report sustainable business builds trust and reputation.
- Ignoring ESG exposes investments to huge risks and erodes returns. This behavior has wiped out $534bn of valuation in the last five years.
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