The business case for ESG

Enterprise sustainability and governance by the numbers

Companies are increasingly focused on fulfilling their environmental, social, and governance (ESG) objectives. One in 4 CEOs rank ESG as a top-three priority, according to a new survey by the research firm Verdantix.

Yet most companies lack the organizational and technological support to show their progress. Here’s a look, by the numbers, at the business case for comprehensive ESG programs in the enterprise.

ESG pressure is mounting

Investors, shareholders, and employees want companies to meet new standards of sustainability and governance. Regulators are stepping in to provide enforcement.

Companies are in catch-up mode

Many companies lack board-level experience in overseeing ESG efforts or don’t have adequate data-collection tools and systems.

ESG promises big payoffs

Well-managed ESG initiatives will deliver higher top-line growth and are more likely to attract top talent.

Research by Isaac Sultan

Sources:

1. CNBC; 2. MSCI; 3. IR Magazine; 4. Cone Communications; 5. PwC; 6. SSRN; 7. Xenophon Strategies; 8. Rock Center for Corporate Governance, Stanford University; 9. Marsh & McLennan Advantage; 10. McKinsey; 11. Zeno; 12. McKinsey