ESG REGULATION, OVERSIGHT AND DISCLOSURES

R&C: Could you outline the key drivers for companies to strengthen their environmental, social and governance (ESG) commitments?

Coppola: Forward-looking leaders have realised that environmental, social and governance (ESG) has the potential to unlock significant value for organisations. With a broader strategic perspective, companies run the risk of being distracted by the regulatory requirements of ESG compliance without realising the upside of their ESG commitments. Increasingly, investors and ratings agencies are dialling into ESG as a true source of value creation for organisations, and it is a win-win for everyone. Consider the cascade of benefits of access to sustainability-linked bonds and credit, which unlock capital and provide favourable finance terms to ESG-compliant companies. Cheaper finance means there is more money to invest in new and tangential green business revenue streams. This drives innovation and expands ecosystems. And it increases the need for investment in talented and skilled workers for fit-for-purpose jobs that benefit the planet and society.

Apr-Jun 2023 Issue

Boston Consulting Group

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