A comprehensive review of more than 200 academic studies, industry reports and books on the subject of environmental, social and governance factors in investing shows specifically how corporate sustainability practices translate into economic benefits to shareholders. Among the key findings: 90% of research finds that companies that pursue sound sustainability standards have a lower cost of capital compared to companies that don’t; 88% of research shows that good ESG practices result in better operational performance (and less risk) of firms; and 80% of research finds that companies that implement good sustainability practices have better stock price performance. Given the findings, the authors suggest that it is in the long-term self-interest of investors to play and active role in influencing companies to adopt better sustainability practices into their decision making.
