Accounting firm Moore Global has released a report around the impact of ESG on companies’ business performance. A total of 1,262 companies with more than 250 employees based in Australia, France, Germany, Italy, the Netherlands, the United Kingdom, and the United States were surveyed between May and June 2022. Over the past three years, companies that said they valued ESG saw a 9.7 percent increase in revenue, compared to “only” 4.5 percent for those that did not consider it.
U.S. companies that took ESG factors into account saw their revenues increase by $2.1 billion, ahead of European companies ($930 billion) and Australian companies ($59 billion), for a total increase of $3.1 billion. For their part, companies that did not take extra-financial criteria into account experienced a “much smaller” increase in revenue, with $402 billion.
Read more on the subject and find the most important business headlines with the Born2Invest mobile app.
Better access to financing
While “the vast majority of companies have had to invest to improve their ESG performance”, the costs “appear to have been offset by better access to funding”. Indeed, 84% of companies reported that the ability to raise capital had become slightly or significantly easier as a result of their ESG acceleration.
In detail, 92.9 percent of IT companies said that engagement with ESG had slightly or significantly improved their ability to raise capital. “Energy-intensive industries have a harder time adapting their operations to ESG principles, while service sectors such as IT probably have a much easier transition,” said Sam Miley, economist and author of the report.
59% of French startups already have ESG initiatives in place
EDHEC Entrepreneurs, the incubator of EDHEC Business School, in partnership with STATION F, has published a study aimed at “taking stock of environmental, social and governance (ESG) practices in the French ecosystem.” Conducted among more than 200 startups, the survey reveals that more than 90% of them claim to “be convinced of the importance of ESG initiatives.” The report categorizes startups according to 4 typical profiles: ambassadors (40%), aware (38%), pragmatic (13%) and passive (9%).
In detail, 59% of startups have already implemented ESG initiatives, while 90% of them “take into account the ESG involvement of a partner in their selection criteria”. The survey also highlights that 95% of startups that have implemented ESG initiatives see “a real benefit”.
Pressure from stakeholders
However, the report states that “while the desire to act is there, ESG issues are often perceived as complex. Among the “obstacles” cited by startups, 58% mention “lack of resources” while 49% say they lack “time”.
In addition, EDHEC added that the various stakeholders do not fail to put “pressure” on startups regarding “the need to integrate ESG issues”. These requests regarding their responsible practices come “mostly” from their customers (21%), then from their business partners (15%), incubators (14%) and employees (12%).
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Mundo Crypto on the Verge of Bankruptcy: Layoffs and Office Closures
Seeing the plight of Mundo Crypto on the brink of bankruptcy, Thawani is already starting to take action. He announced...
Vockenrod Wind Farm Misses Crowdfunding Target – but Is Built Nonetheless
A few days ago, regional supporters of the Vockenrod wind farm received a mail. It stated that the project's crowdfunding...
Iris Capital Raises a New Fund of €150 Million to Support Fintech Companies
The fund, which employs 20 people, now supports 45 companies and manages €800 million. Among them, 40% are French, and many...
Ministry of Public Health Argentina Received the First Delivery of CBD Oil for Epilepsy Patients
The Ministry of Public Health will be in charge of the distribution, while Biofactory Misiones and Misiopharma work together in...
Sunprime Closes a Project Financing for €150 Million
Sunprime is a fast-growing independent electricity producer, founded by a team of energy professionals in Milan in 2020, which in...
Business2 weeks ago
Holiday Travel Made Easier – The Perfect Shoe for Flying Past TSA
Business1 week ago
Give the Gift of Science-Backed Skincare This Christmas With Augustinus Bader
Crypto1 week ago
Recent Developments: Is Ethereum Still a Good Choice for Investment?
Cannabis1 week ago
Study Shows a Decrease in Cannabis Use Among Young Users in Spain