McKinsey wrote a clarifying article on how ESG can bring value to a company and suggests there are five links to value creation.
- Top-line Growth
- Cost reductions
- Reduced regulatory and legal interventions
- Employee productivity uplift
- Investment and asset optimization
You can read the article here: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/five-ways-that-esg-creates-value