How ESG Ratings Create ROI Through Valuation and Lower Cost of Capital

November 17, 2022 EcoVadis EN


As interest in ESG and sustainability measurement and reporting grows, so too does private equity (PE) investors’ interest in reviewing ratings as they evaluate companies. A PWC Global Private Equity Responsible Investment Survey revealed that 72% of respondents always screen target companies for ESG risks and opportunities at the pre-acquisition stage. Interestingly, 56% of respondents have refused to enter general partner agreements or turned down investments on ESG grounds – making the connection between ESG/sustainability and investing activity even more tangible.

By making ESG and sustainability ratings a top priority, companies can boost their enterprise valuation while lowering the cost of capital.


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About the Author

EcoVadis EN

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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