Strong sustainability performance is a reliable benchmark of a company’s financial viability, according to an in-depth literature survey published in September by asset manager Arabesque and the University of Oxford.
“Eighty percent of the studies evaluated demonstrated that systematic sustainability management exercises a positive influence on share prices,” CSRwire reports. “So potential investors would be well advised to take environmental, social, and governance (ESG) criteria into consideration when making investment decisions.”
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The evaluation of more than 200 previous studies found that sustainable businesses’ superior market performance “is not just wishful thinking on the part of eco-activists or social interest groups,” Schmid writes. And “the British metastudy has good news for companies, too: 90% of the studies prove that sustainably managed companies can raise capital at significantly lower cost.”
