Optimising with Leading ESG Platforms

Importance of ESG Investing

Growing CEO Recognition of ESG

Environmental, social, and governance (ESG) factors are becoming more and more central to company strategy. You can see it in the numbers—82% of US CEOs in the EY CEO Survey 2022 said ESG investment is a key part of what drives their company’s value. That’s a big deal and shows that corporate bigwigs are waking up to the importance of these issues.

Plus, when companies bring sustainability into their game plan, they often see good things on their financial sheets. Research by NYU Stern and Rockefeller Asset Management found that 58% of businesses with ESG strategies noted a boost in their financial performance. So, not only can these initiatives do some good for society, they can also fatten the company’s wallet, making it a win-win.

Impact of ESG Investing Growth

ESG investing is on a roll, with no signs of slowing down anytime soon. Bloomberg says we’re talking about global ESG assets possibly hitting over $53 trillion by 2025. This surge is largely driven by folks worrying more about climate issues, social equality, and how businesses are run.

Right now, ESG assets stand at about $4 trillion, or around a third of all assets under global management. As these issues grab more of the spotlight, more investors are hopping on the ESG train. If you want to dig into how these ESG factors sway investment calls, you might want to check out our takes on esg policy and esg reporting.

Interesting Tidbit	Number
US CEOs saying ESG is a strategic value driver	82%
Businesses with a positive link between ESG and financial success	58%
Forecasted global ESG assets by 2025	$53 trillion
Current ESG assets’ share of global management	1/3

To see more about how ESG connects with financial results, have a look at esg metrics and esg goals. Getting a handle on these elements can help you keep up with the changing world of ESG investing.

Benefits of ESG Funds

Surge in ESG Fund Popularity

There’s a noticeable buzz around ESG (Environmental, Social, and Governance) funds, and for good reason. These funds saw a jump in popularity, raking in $649 billion by the end of November 2021. Compare that to the $542 billion in 2020 and $285 billion in 2019. That’s some serious growth!

Year	Inflows ($ Billion)
2019	285
2020	542
2021	649

More investors are eager to put their money where their values are, focusing on companies that care about the planet and its people. It’s not just about profit anymore; it’s about making a positive impact. For a closer look at this trend, check out why is ESG important.

Performance of Sustainable Funds

When it comes to performance, sustainable funds often steal the spotlight from traditional ones. According to Morningstar, over 10 years, 58.8% of sustainable funds left their conventional rivals in the dust. Why? Because many ESG portfolios tend to hold their own during market hiccups and offer better long-term results.

Metric	Sustainable Funds	Traditional Funds
10-Year Period Performance	58.8% Outperformed	41.2% Outperformed
Blend Equity Funds (over 10 years)	80% Outperformed	20% Outperformed

Look at blend equity funds—focusing on sustainability, 80% outshone their traditional peers over a decade. It just goes to show how weaving ESG factors into investments can pay off. Interested in diving deeper into these ideas? Swing by ESG principles.

If you’re thinking about jumping on the ESG bandwagon, our detailed guide on ESG software is a great place to start for making your investment game more sustainable.

ESG and Financial Performance

Ever wondered how your investments could do a world of good and still make money? That’s what Environmental, Social, and Governance (ESG) investing is all about—balancing the planet’s needs with your wallet. Let’s chat about how ESG factors can boost financial and company performance.

Positive Relationship Between ESG & Finance

Let’s get down to brass tacks: companies really working on sustainability show some serious financial perks. A sunlit alley of research, like that from NYU Stern Center for Sustainable Business and Rockefeller Asset Management, shows 58% of these firms see their green efforts paying off big time. That’s a huge nod to why ESG should be in every investors’ playbook.

Metric	Percentage
Corporations enjoying the financial benefits of ESG	58%

Don’t think of ESG as the latest fashion. It’s more like the new black in investing, with ESG assets stacking up to $4 trillion. That’s about a third of global money pots. And insiders reckon we could be staring down the barrel of $40 trillion in ESG assets by 2030. That’s a heck of a lot of green thinking bringing greenbacks.

Curious about weaving ESG into your money matters? Swing by our ESG strategy guide for some pointers.

Link Between ESG & Company Performance

Ever noticed how the right kind of buzz can boost a company’s game? That’s exactly what’s happening with firms putting ESG first. They’re not just shining up their brand but also running things smoother and dodging risks like a pro athlete. All this translates into more coins in the company’s coffer and a promising future.

Firms that zero in on ESG often see their people happier, customers more loyal, and investors smiling. These gains are the real deal when it comes to cranking up company numbers, shouting from the rooftops about the power of ESG today.

ESG Impact Area	Benefits
Reputation	Trust and loyalty skyrocket
Operational Efficiency	Resource management gets a serious boost
Risk Management	Comply better, risk less
Employee Satisfaction	Morale goes through the roof and folks stick around

Want the lowdown on how ESG reporting ties in with company performance? Check out our insider article.

By hopping on the ESG train, companies aren’t just keeping up—they’re getting ahead. Ethical moves are aligning with financial win-wins, paving the way for a future that’s better for everyone. To keep your ESG badges shiny, see our tips on staying compliant.

Grasping the bond between ESG and finance is your secret weapon for today’s businesses. Think of ESG strategies like your compass for growth that lasts and long-term kudos. Way cooler than a one-hit wonder!

ESG Software Platforms

Role of ESG Software

ESG software programs are like the unsung heroes behind Environmental, Social, and Governance (ESG) management. These tools gather, check, and put together the information needed to keep companies in the know and ready for anything. They take out the hard work from managing all things green and good and make sure businesses are playing by the rules.

What can ESG software do for you? Well, here’s the scoop:

• Gathering Info: Grabs all those tricky bits of ESG data from your organisation’s many corners using clever coding magic, cutting out the repeats and making reports a breeze.
• Checking Facts and Figures: Keeps all the collected info truthful and solid – a must for staying on the right side of the compliance game and audits.
• Putting Words on Paper: Helps whip up detailed reports that tick all the right boxes, making everything crystal clear for anyone looking in with accountability.

These software solutions are a real game changer for companies wanting to keep up with things like the rules in the UK and satisfy the growing craving for clarity in ESG deeds.

Market Growth & Projections

The ESG software market is on a rollercoaster – and it’s only going up.

Year	Market Size ($ Billion)
2022	0.7
2024	1.5

• Global Size Watch: Starting at a cool $0.7 billion in 2022, the ESG software market isn’t stopping soon. It’s expected to keep climbing to a whopping $1.5 billion by 2024. Why? Because folks are demanding more openness about ESG efforts and staying on top of the shifting rules.
• Top Dogs: By 2024, Prophix One™ is making waves as one of the top 11 ESG tools for those number-crunching finance types. It doesn’t just handle ESG reporting but also jazzes up financial planning, budget builds, forecasting, and more.
• What’s the Cost?: How much you’re shelling out for something like Prophix One™ depends on the crew using it, how it’s hooking into other systems, and what exactly you need it to do.
• No Stress, All Smooth: Good ESG platforms get rid of the hassle, collecting data like a dream and making it all work together seamlessly.
• Keeping it Honest: Solid ESG software should be a cinch to audit, with easy exports, history checks, and solid data trails. It builds trust by keeping everything accountable and above board.

Figuring out why ESG software platforms matter not only helps companies stick to the reporting playbook but also sets them up to create a future that’s open and eco-friendly.