Focus on sustainability unlocks business potential
Embracing ESG (environmental, social and governance) principles and practices generates a significant revenue boost for ambitious mid-sized companies, according to a wide-ranging Moore Intelligence survey.
In the post-Covid era enlightened business leaders have increasingly put sustainability on a par with profitability, with ambitious mid-sized companies embedding new ways of engaging with customers, suppliers and society as a whole.
Our survey partner the Centre for Economics and Business Research (Cebr) asked leaders from 1,800 business that employ at least 250 people in 12 key economies how embracing ESG impacted the bottom line and the general effectiveness of their operations.
Cebr calculated that mid-sized to larger businesses that place greater importance on ESG and sustainability have seen their revenues increase by $3.1 trillion over the past four years.
If all businesses in our study had witnessed the same revenue growth increase as the most committed ESG advocates, the total revenue uplift would have been $3.8 trillion, or an average of $39 million for each company.
“Businesses that serve the greater good of helping society, protecting the environment and conducting themselves appropriately with good governance have a clear advantage over competitors who do not,” says. Anton Colella, Moore Global CEO. “We hope our research proves a powerful motivation for all companies to follow suit.”
Other key findings from our survey of around 1,800 business leaders in 12 key economies around the world:
• 84% of companies said ESG principles have grown in importance from 2019 to 2023.
• Businesses placing greater emphasis on sustainability over the last four years have seen revenues increase by 10% over the same period – more than twice the rate of less committed businesses.
• 79% of businesses where the importance of ESG principles has increased in recent years report that customer retention has improved. This compares to only 47% for other organisations.
• Among businesses indicating progress in ESG practices, 81% also reported an improvement in their brand image compared to only 49% of other businesses.