Every business and every person can make a difference. Building a more sustainable future requires genuine effort and commitment from all stakeholders - from governments to individuals, from investors to businesses.
Current estimates are that more than 25% of assets under management are invested through the environmental, social and governance lens. Sustainable investing, which used to be a niche practice, is the new norm. This makes solid financial sense. Studies suggest that there is a positive correlation between adoption of a sustainable policy, and better performance outcomes.
While these ideas were at one time considered on the fringe, they are now mainstream and critical to a company’s ethos and often to their balance sheet. There have been numerous examples in the past couple of years, where shareholders have voted with their feet in selling shares of companies who appear to be shunning these principles.
Here are some of the benefits:
- Impact on key global developments
- Elevated and positive stakeholder engagement
- Better interest alignment with employees, which may result in improved attraction, development and retention of talent
- Stronger corporate social responsibility, which generates reputational benefits
- Demonstrated commitment to sustainability practices will differentiate you from peers
- Increased and diversified investor base
- May result in lower financing cost and more attractive deal terms, as well as access to sustainability-linked financial instruments.
Effective sustainability disclosure enhances transparency and helps investors allocate capital to investments and companies, which are aligned with their portfolio strategy, shareholders, as well as stay ahead of regulatory initiatives.
Speak with our team to learn how we can develop and elevate social sustainability developments and reporting in your organisation.
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