May 3, 2021
Chief financial officers (CFOs) who improve their organisation’s environmental, social and governance (ESG) reporting to investors will enjoy improved access to capital, stock performance, and customer loyalty, according to Gartner.
“Approximately one in 10 investors find the ESG information they are looking for in corporate disclosures,” says Stephen Adams, director in the Gartner Finance practice. “There is an enormous opportunity here for most companies to stand out better to investors simply by providing the information they are looking for.”
The benefits of delivering better ESG performance are also not purely financial in nature. A company that improves its ESG performance will tend to have a reduced compliance burden, see higher levels of employee satisfaction and find talent more easily, in addition to being a less likely target for shareholder activism.
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