As interest in responsible products and services grows, companies are showing the ability to adapt
Summary
A Harvard Business Review study also highlights that companies with a high ESG rating are 2.3 times more likely to outperform their competitors with a low rating in terms of financial performance.
According to data from MSCI ESG Research, companies committed to environmental, social and governance (ESG) practices demonstrated superior financial performance in 2020. These organizations, which follow rigorous environmental, social and governance criteria, achieved an average total return by 27.46% compared to 22.14% for the general market.
A Harvard Business Review study also highlights that companies with a high ESG rating are 2.3 times more likely to outperform their competitors with a low rating in terms of financial performance.
According to Rica Mello, business management specialist and founder of BCBF Group, the growing demand for sustainable practices is putting this issue under the spotlight in the corporate world.
“Several sectors are receiving incentives to integrate sustainability strategies into their daily operations, a movement that meets market expectations and positions leaders as visionaries and aware of the future of the planet,” he highlights.
Terms that have become common
Due to contemporary emergencies, social responsibility, sustainability as a whole and ESG have become common terms in everyday life.
“The world is changing and these concepts are also in the sights of consumers and investors. Today more than ever, the way managers achieve their results and use natural resources is constantly evaluated by society. Due to this scenario, it is essential that institutions understand what their role is and the impact they can generate,” adds Rica.
Along with this, the notion of Corporate Social Responsibility (CSR) has emerged as a response to growing discussions about the power of corporations and the need for ethical and transparent management. In this scenario, sustainability, which began to gain relevance after its definition by the World Commission on Environment and Development in 1987, encompasses much more than simple environmental protection, extending to social and economic well-being.
Recently, the term ESG has consolidated these practices by defining clear criteria and metrics for corporate actions, helping not only the transparency of operations, but also to adapt to the demands of an increasingly aware market.
“As interest in responsible products and services grows, those who embody these values show an ability to adapt to new needs, as well as their commitment to the future of the planet and future generations,” he emphasizes.
The entire process means that such organizations, by internalizing the concept of social responsibility and sustainability, can go beyond complying with regulations, but lead by example, setting new standards of excellence and responsibility.
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Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
