The ESG Conundrum Proves the Value of Sustainable Business
By Mandi McReynolds, Head of Global ESG, Workiva
Evidence overwhelmingly suggests that companies, which get their ESG proposition right can create more business value. By paying attention to ESG concerns, companies don’t compromise their returns – rather, the opposite.
But even as the case for a strong ESG proposition becomes more compelling, an understanding of how ESG criteria link to value creation is often less comprehensive. This can lead to investor concerns and mistrust. According to a recent Workiva survey, 52% of UK investors find it difficult to trust a company’s actions and what they say, when it comes to the environment and society.
Against this backdrop, companies walk a fine line: they must actively show themselves to be good corporate citizens, while proving that any investments in sustainability boost business performance. So how can businesses get this balancing act right, and address stakeholder concerns?