The Business Case for ESG

Citation
Title:
The Business Case for ESG
Year: 
2019
Publication: 
Stanford Closer Look Series
Volume: 
CGRP77
Issue: 
May 23, 2019
Start Page: 
1
End Page: 
8
Publisher: 
Copyright © 2019 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved.
Language: 
English
URL: 
https://www.gsb.stanford.edu/faculty-research/publications/business-case-esg
Select license: 
No License (All right reserved)
DOI: 
PMID: 
ISSN: 
Abstract:

The Business Case for ESG

Brandon Boze, Margarita Krivitski, David F. Larcker, Brian Tayan, and Eva Zlotnicka

Stanford Closer Look Series

May 23, 2019

Recently, there has been debate among corporate managers, board of directors, and institutional investors around how best to incorporate ESG (environmental, social, and governance) factors into strategic and investment decision-making processes. In this Closer Look, we examine a framework informed by the experience of ValueAct Capital and include case examples.

We ask:

 

  • What is the investment horizon prevalent among most companies today?
  • Do companies miss long-term opportunities because of a focus on short-term costs?
  • How many companies have an opportunity to profitably invest in ESG solutions?
  • What factors determine whether a company can profitably invest in ESG solutions?
  • Can investors earn competitive risk-adjusted returns through ESG investments?
  • If so, how widespread is this opportunity?
Comments
  • Recommend Us