Environmental, social and governance (ESG) imperatives have become fundamental to how businesses make investment decisions.
According to the first Sanlam ESG Barometer survey, researched by Intellidex, there are two equally important reasons why organisations have ESG strategies: to achieve a positive impact in society and to attract investors. The latter, however, seems to carry more weight than suggested. More than 40% of survey respondents identified investors as the most highly valued stakeholders for strategic input into ESG strategies.
While South African businesses can become more attractive for foreign investors by effectively implementing ESG in business strategy, organisations need to demonstrate to investors how their actions go beyond ESG risk management to achieve positive social or environmental impact through investing in ESG opportunities.
The Sanlam ESG Barometer in partnership with Business Day is the first to assess how JSE-listed companies are actively improving environmental and social outcomes in society through their activities.
Download the report here.