McKinsey & Company, a world-renowned management consulting firm, has found that environmental, social, and governance (ESG) issues are a valuable focus for companies across all industries and sectors. Results from the latest McKinsey Global Survey, which focuses on investors and business executives, shows that there is both short-term and long-term value in ESG programs and initiatives.
McKinsey reports that this perspective has changed over the past decade. More respondents now believe that ESG strongly impacts a company’s value in terms of strategic, operational, and financial performance. This is because ESG initiatives can save considerable costs, but also because such initiatives show that the company cares about its impact on the environment, something that customers value too. Respondents also believe that ESG initiatives, particularly those that focus on the environment, will make companies more valuable in the future as well.
McKinsey concludes by citing its earlier research that businesses can “improve top-line growth, reduce costs, minimize regulatory and legal interventions, improve employee productivity, and focus expenditures” through strong performance on environmental, social, and governance issues.
Read more about the survey and its findings: The ESG premium: New perspectives on value and performance