Debunking the myth: Aligning ESG with profit maximization


Authors:

  • Bruno Dück, Senior Consultant

Opinion Piece

The understanding of corporate responsibility has changed fundamentally. Formerly seen as a burden, companies, especially listed ones, recognize the importance of ESG (Environmental, Social, and Governance).

Today, ESG is considered strategically important for corporate stability and profitability. Natural and economic risks, such as natural disasters or changing supply chains, demonstrate the urgency of integrating ESG into business models.

Examples from the banking sector and the global supply chain, such as the Panama Canal drought in 2023, illustrate that environmental changes directly influence corporate risks. ESG ETFs in Europe saw significant inflows in 2022, highlighting the increasing pressure on companies to integrate ESG.

Companies like AXA and Zurich Insurance are using advanced risk management to show that ESG considerations can no longer be ignored. Adapting to ESG risks is critical to maintaining social license to operate and ensuring long-term business success.

Discover in our e-paper how you can effectively integrate ESG principles into your profit strategy. We provide you with insights and support for a sustainable and profitable future for your company.


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