The Bottom Line: Does Better ESG Lead to Better Financial Performance?
Recent research proves that it “pays to be good.” Director of Ergonomics Research Blake McGowan explains the connection between corporate sustainability, financial performance, and risk management in this months installment of the Bottom Line.
Risk management is the dominant factor between sustainability and financial performance.
Reference: Atz, Ulrich and Van Holt, Tracy, and Liu, Zongyuan Zoe. Do Corporate Sustainability and Sustainable Finance Generate Better Financial Performance? A Review and Meta-analysis (September 9, 2020). Available at SSRN: https://ssrn.com/abstract=3708495 or http://dx.doi.org/10.2139/ssrn.3708495.