海角视频

In volatile times, can ESG provide a path to boosted performance and resilience? New research from 海角视频 gives a clear answer: yes.

I鈥檝e been working in sustainability for thirty years, and in that time, I have seen it go from a niche to a mainstream consideration. Recently, ESG has taken centre stage.

At 海角视频, we felt that something was missing 鈥� there was an evidence gap in the value that ESG can bring to built environment businesses, in particular. In order to fill that gap, we surveyed 400 senior executives across the globe, asking them to provide insights into how environmental, social and governance work has impacted the performance of their business.

tells us that whether a business chooses to call it 鈥楨SG鈥�, 鈥榬isk management鈥� or 鈥榮ustainability鈥�, the opportunities available are the same: it can boost performance and resilience by addressing interconnected challenges and opportunities. The ability for businesses to manage interconnected environmental, social, and financial risks isn鈥檛 optional 鈥� it鈥檚 a strategic imperative.

We believe 鈥� and this research shows 鈥� that the businesses that prioritise resilience and align their strategies with evolving risks and opportunities are those that will see the most success. Below are some of my key takeaways from our research report, 鈥淓SG as a catalyst for business resilience and growth鈥�.

The growing maturity of ESG in the built environment

We wanted to understand to what degree those surveyed acknowledge the importance of having an effective ESG strategy.

The data from our respondents showed that 82% are either developing an ESG strategy, actively working to integrate ESG into their broader strategy or have already embedded ESG into their organisation鈥檚 core strategy. Interestingly, when this data is segmented, we saw that investors are a little further ahead that our other respondents.

This shows that ESG is maturing in the built environment. As more organisations are embedding it into their core business strategies and into their products/funds/buildings, they are acknowledging they recognise that sustainability is not just a responsibility but is a driver of resilience and growth.

Financial impact

There is a compelling link between mature ESG strategies and improved business outcomes. Our research shows that businesses with a mature and integrated approach to risk management are already seeing measurable financial benefits. The strong number that stands out is that nearly 80% of those surveyed report a positive impact on financial performance, some exceeding 20%.

Of those who reported a positive impact, over 40% reported an increase of more than 11%, and a further 42% reported a 5鈥�10% increase. This shows to me that those who act decisively are already ahead, and those who want to see improved financial performance would do well to begin or expand their ESG activities.

If you bake ESG into your core business operations, products and approach, you can reduce downside risk and improve upside opportunities to navigate the multiple environmental, social and economic challenges we are all currently wrestling with. There is real potential for those of us working in this space to help clients turn commitments into action, solving their complex challenges.

Ultimately, it simply makes good business sense.

There are three core motivations for ESG activity

This research was a great opportunity to really dig into what motivates and drives businesses to engage in ESG activities, and how they view it as a pathway to resilience and growth. We found that the three core motivations are:

1. To meet increased regulations and regulatory scrutiny
2. To attract new investment and meet investor demand
3. To increase long-term value and shareholder return.

When businesses engage in ESG activities they are driven by regulatory scrutiny, but also by their own strategic aims to enhance long-term value and investment opportunities. Resilience against risk and financial performance are increasingly seen as intertwined. ESG is no longer a 鈥榥ice to have鈥� but a core part of protecting and enhancing asset value over time.

This is a challenging, delicate balance 鈥� but our respondents were clear on the importance of all three motivations.

The growing risk of the climate crisis

68% of our respondents say that climate risk and the related insurability and cost of insurance will be a rising concern for their business over the next three years. Climate risk is rapidly becoming one of the most material concerns for leaders in the built environment.

We need only look around us for recent news of heatwaves and flooding to see the physical impacts on us people, buildings and infrastructure, and to see the importance of integrating climate resilience into long-term business and asset planning.

It is evident that climate risk is no longer a peripheral issue. It is rapidly becoming a central, material priority for decision-makers in the built environment. Leaders who proactively integrate these risks into their strategy are the ones who are more likely to build more resilient businesses and assets in the face of the climate crisis.

鈥榃hether you call it 鈥楨SG鈥�, 鈥榬isk management鈥� or 鈥榮ustainability鈥�, the purpose is the same: to boost performance and resilience by considering the most important interconnected environmental, social and economic challenges and opportunities.鈥�

We鈥檒l be releasing more about how this work can be delivered soon. Sign up below to be the first to know.