News

KPMG Survey

Companies increasingly expect their ESG strategies to contribute to positively to business and financial outcomes, in areas ranging from M&A and new product opportunities to talent and customer retention, although many executives are concerned about keeping up with complex and changing sustainability regulatory requirements, with only around a quarter reporting confidence in meeting ESG reporting requirements across several jurisdictions, according to a new survey released by professional services firm KPMG.

The business leaders identified M&A efficacy as the top area in which ESG is adding value to their businesses, with 41% reporting that ESG engagement adds major financial value, with other top areas including access to new capital sources at 35% and customer retention at 34%.

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Over 70% of Businesses View ESG as a Revenue Enabler

The argument that ESG harms profitability is “more than a myth—it’s misinformation that leads to poor business decision-making,” according to a new study released by IBM, which found that more than 70% of executives view ESG as a revenue enabler, and that consumers increasingly focus on companies’ sustainability performance when making purchasing and employment decisions. (Source: ESGtoday.com)

“ESG leaders are 43% more likely to outperform on profitability—and 52% more likely to say ESG efforts have a huge impact on profitability.”

“72% of executives say ESG needs to be a higher priority in their organization.”

Read the full report here.

New study from Bain & Company and EcoVadis

ESG activities, regarding sustainability, diversity and employee satisfaction, correlate with stronger financial profitability and growth for private companies, revealed a joint study by Bain & Company and EcoVadis released today.

Four correlations between ESG activities and business results:

1. Companies with more women on the executive team have better financial results.
2. Renewable energy usage correlates with higher EBITDA margins in carbon-intensive industries.
3. Companies that focus on ethics, environmental and labor practices within their supply chains are more profitable.
4. ESG leaders have higher employee satisfaction; companies with the most satisfied employees grow faster and are more profitable.

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BlackRock's Larry Fink says “not our place to be telling companies what to do” on climate, and more...

Investment giant BlackRock will continue to view climate risk as an investment risk, according to the firm’s Chairman and CEO Larry Fink’s annual letter to investors released today, that addressed a series of claims by anti-ESG politicians, such as accusations that BlackRock forces companies to reduce emissions, or that the firm “boycotts” energy companies.

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2023 Canadian ESG Reporting Insights from PwC Canada

PwC Canada reports over 70 per cent of the country’s 250 largest public companies do not obtain external assurance for their environmental, social and governance (ESG) reports, nor do they disclose climate-related financial information.

In conclusion, it finds they are making slow progress on corporate sustainability reporting.

Read the full article here.