Precisely determining the financial performance of companies and influencing the effectiveness of an investment portfolio. Thanks to it investors are able to predict what profits they can achieve and what losses they may incur by financially supporting a selected company. Omitting ESG elements may significantly increase investment risk and thus result in withdrawal from a given investment. Let us remember that a company's financial results are not everything and only a holistic look at the activities undertaken by the company can provide the answer to the popular question: is this investment worth it?
In a word companies that aim to attract longterm investors should ensure regular presentation of nonfinancial data and sustainable development. Innovations It is worth knowing that companies that value sustainable management are more Hit Post likely to be innovative more efficient and constantly looking for new solutions that will make it easier to adapt to dynamically changing market conditions. In this way they will remain important players in the industry for longer compared to companies that will not strive for change. After all lack of development does not equal stability but regression which can end in disaster for any business.
Financing To develop you need financial resources. Banks are more willing to lend to a company that complies with ESG criteria. The issue of entering the stock exchange or resale of part of the assets is similar here too entrepreneurs who focus on environmental social and corporate governance definitely win. Customer acquisition Introducing ESG can also help a company attract customers. Consumers are more likely to buy products or use the services of a company that cares about the environment . In times of the growing climate crisis this is a topic that should not be omitted when creating a company's strategy.