April 2009, McKinsey & Company
The presentation demonstrates that ESG activities create value in areas traditionally valued by the market: growth, return to capital, risk management, and management quality. Additionally, they assert that most companies create value with ESG activities; however they do not know the value or report it. In their study, McKinsey & Company examined other ESG metrics, measurements, and rating systems, and concluded that most of these don’t take financial value into account. They conclude by stating that companies need to improve their communication because ESG activities can have direct and indirect financial impacts.
