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What Do Companies With Improved Financial Results Have in Common in Terms of ESG Practices and Frameworks?
CSE Research explores why 'doing business as usual' is no longer a valid option and the shift to 'doing business in a sustainable way' is the only way to secure companies’ trust and financing.
What Do Companies With Improved Financial Results Have in Common in Terms of ESG Practices and Frameworks?
CSE Research explores why 'doing business as usual' is no longer a valid option and the shift to 'doing business in a sustainable way' is the only way to secure companies’ trust and financing.
Published 12-16-20
Submitted by Centre for Sustainability & Excellence (CSE)
CHICAGO, December 16, 2020 /CSRwire/ - The Center for Sustainability and Excellence (CSE) announces its fourth consecutive 2020 Annual Research into ESG Ratings and Sustainability Reporting Trends in North America, focusing in common ESG practices and frameworks used by companies and organizations with improved financial results (e.g Annual Revenues increase). The analysis of the companies with the highest ESG scores shows strong evidence that ESG Reporting and Strategies with ambitious goals together with the use of appropriate frameworks have a very positive impact on financial performance.
The research analyzes 660 unique Sustainability (ESG) Reports published by companies and organizations based in North America (U.S.A. and Canada), many of them included in the Fortune 500 companies. The research examines the ESG performance and practices of top 50 companies and top 10 in 12 different sectors in terms of consolidated ESG ratings such as CSRHub, MSCI, Sustainalytics and CDP.
During a 3- year period (2017-2019), 4 out of 5 of the top ESG rated companies achieved better financial results as indicated by their annual revenues. All these companies had comprehensive ESG strategies and transparent Sustainability Reporting that includes ambitious goals, which are the drivers for high ESG scores.
Other important findings of the research include:
Fifty-nine percent (59%) of the ESG reports used the guidelines of the Global Reporting Initiative.
23% of the ESG reports refer to the UN Sustainability Development Goals, an increase of almost 10% compared to the previous research.
Looking at the top 10 companies in 12 sectors based on their consolidated ESG Ratings 39% of the organizations have used the SASB Standards to provide information in a manner that is most relevant to their financial stakeholders, while the TCFD recommendations are gaining traction, as 38% of the top 10 companies are identifying and reporting their climate-related financial risks and opportunities.
CSE used the outcomes of the research to further strengthen and expand the Return on Sustainability (ESG) framework which was established through the results of the previous researches in 2018.
CSE’s findings will be presented during its Certified Sustainability (ESG) Practitioner Programs, Advanced Edition, throughout North America. For more information visit www.cse-net.org or contact sustainability@cse-net.org.
CSE 2021 Certified Sustainability (ESG) Practitioner Program Agenda
CSE is one of the leading ESG Consulting and Training firm specializing in maximizing social, economic and environmental impact. CSE helps FORTUNE 500 and other organizations around the globe improve their ESG Ratings and maximize their impacts.
CSE is a global provider of Sustainability (ESG) Training programs that help professionals advance their careers through our certified on-site, online and group training services since 2004.
Centre for Sustainability & Excellence (CSE)
Centre for Sustainability & Excellence (CSE)
CSE is a global Leading network providing Sustainable Development Solutions to organizations & a Think Tank with offices in Brussels Athens & Dubai. CSE cooperates with international organisations, such as the EFQM (European Foundation for Quality Management), GRI (Global Reporting Initiative), UN Global Compact (United Nations Global Compact), EBEN (European Business Ethics Network), Forum for International Communications and the European Commission. CSE supports, on their journey towards sustainability, leading organizations such as Lloyds TSB, Eurocontrol, Dell, BP, DHL, Lafarge (Aget Heracles), Mc Cain, Bank of Cyprus and many others including the European Investment Bank, the largest financial Investment Institution of the European Union and the Government of Dubai (Dubai Center for Corporate Values ,DIFC, TECOM, DAFZA). The global presence of CSE is enhanced by numerous activities carried out in many countries/regions including the United Kingdom, Belgium, Luxemburg, Germany, Spain, Italy, Cyprus, Bulgaria, Romania, Turkey, Russia, China and the Middle East.
