Advantages of Starting a Climate, Sustainability, or ESG Program

Exploring the advantages of starting a sustainability or climate program for your business? Have you wondered if it makes sense for your business? Fresh Coast assembled some tangible reasons why it makes sense. Whether it's revenue growth, risk reduction or attracting an awesome team, consider incorporating practices into your business model.

Starting an ESG, Sustainability or Climate program can produce multiple benefits for your business

Investor Demand

• ESG assets are on track to represent 50% of all professionally managed assets globally by 2024 - Deloite

• Over 60% of consumers choose, switch, or boycott brands based on their stance on societal issues – Edleman

• Individual and institutional investors are demanding changes in portfolios – JP Morgan

Risk Reduction

• Strong ESG performers have a lower incidence of revenue shortfalls, customer attrition, fraud, and litigation – Wharton

• Financial decisions and divestment are being based on climate-linked risks to portfolios – PWC

Topline Growth

• ESG programs are linked to better top-line growth and stronger returns – McKinsey

• 25 out of 26 ESG index funds outperformed their non-ESG funds – Morningstar

• Companies with ESG programs outperform their competitors – HBR

Cost Reductions

• Executing ESG effectively can help combat rising operating expenses, which can affect operating profits by as much as 60% – McKinsey

• The pressure from financial institutions will touch everything from a company’s credit rating, valuation, cost of capital, borrowing capability and insurance. – PWC

Talent Attraction and Retention

• Companies with ESG programs attract and retain better talent – NASDAQ

• Strong ESG programs can enhance employee satisfaction, , which is positively correlated to shareholder returns – McKinsey

• Millennial and Gen Z generations will expect more from employers on these issues – Marsh McLennan

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