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