Greater integration of environmental social governance (ESG) factors in boardroom decision making and investor risk analysis long has been seen as a crucial building block towards a sustainable, low carbon economy. After all, finance, companies and markets largely dictate how a capitalist economy grows — and how quickly it transitions to greener business models.
What’s more, environmental sustainability makes good business sense. A 2015 review of over 200 studies on sustainability and corporate performance found 80 to 90 percent demonstrated that solid ESG practices and standards result in better operational performance, better stock price performance and lower capital costs.
Read the full article by Michael Holder