How ESG engagement creates value for companies

Now that sustainability has become a widespread value in international community, companies are asked to take charge of their impact on humans and environment. In this regard, ESG principles spring into action, though they are not just a matter of ethics and responsibility. Deeply involved in ESG issues, Rulmeca knows the benefits they give in terms of valuation and reputation. Read more to discover in detail how ESG engagement creates value for companies.

The power of an ESG strategy

Through an integrated and proactive ESG strategy, companies can gain more opportunities, trust, loyalty and investment capital. This turns into a substantial growth in the long run, in terms of productivity, returns, community and government relationships and brand reputation. Hence, a strong ESG inclination basically helps companies expanding their business and improving their overall performance. This clearly contributes to increase the competitive advantage of a company over its competitors in its specific market. These are the reasons why most companies prioritize ESG issues and aim at achieving a relative high score now. Drawing on its strong and direct involvement in several ESG projects, Rulmeca explains how an ESG strategy creates value for companies raising some of the benefits resulting from a sustainable, respectful and responsible corporate philosophy.

How ESG engagement creates value for companies

An ESG attitude creates more opportunities for companies providing easier access to resources, licenses and approvals needed to expand into existing and new markets. Strong ESG practices help to strengthen company reputation to employees, consumers and investors’ eyes. First, especially due to a greater social and governance responsibility, ESG companies draw new talents, retain existing ones and boost employees’ motivation which usually result in increased productivity. In addition, both consumers and investors prefer companies with strong ESG performance. On one hand, sustainable and responsible behaviors drive consumers preferences because they forge a sense of trust amongst them when purchasing. On the other hand, investors tend to allocate resources to ESG companies which are more profitable, less volatile and less risky due to their high performance and minimal regulatory and legal interventions due to their perfect compliance with government regulations and international standards.

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