Report: Companies' ESG scores improve countries' macroeconomic growth

European Business & Biodiversity Campaign - News

Report: Companies' ESG scores improve countries' macroeconomic growth

For the first time a report published in June by the University of Oxford revealed a significant positive correlation between the average ESG scores of companies and macroeconomic development as well as rate of unemployment.

The report by the University of Oxford brings forward economic arguments for investing in sustainable business practices. The scientists analyzed ESG scores from companies of developed and emerging economies over a period of 15 years. It was found that firm-level social performance in a country has positive implications for GDP per capita in both developed and emerging economies. Environmental and governance performance significantly affect the macro-economy of emerging countries.

The authors state in their report: "Our results thus refute the notion that active integration of environmental, social, or governance policies into corporate decision-making will lower GDP growth, and make a compelling case to industry stakeholders, investors, and policy makers that ESG policy implementation across the corporate sector will generate macroeconomic benefits."
Further Information:

Article GreenBiz
Report from Oxford University