ESG Impact

Good for business, society, and the planet.

Do you know the financial implications of climate change or human rights? 
If you aren’t familiar with ESG, it may be hard to see the connections. We can tell you first hand though, the relevance is remarkable. That’s why at Revive Consulting+ ESG practice is woven into everything we do.

We help financial advisory firms understand their impact on society and the environment to make a positive difference on the planet and financial performance.

FAQs

To help you get started with ESG understanding, here we answer some frequently asked questions.
  • What is ESG?

    ESG stands for environmental, social, and (fair) governance; here are some of the components: 


    • Environmental: climate change, CO2 emissions, sustainability, overall impact on the environment
    • Social: diversity, human rights, consumer protection 
    • Governance: management structure, executive compensation practices, employee relations

  • Why does ESG matter?

    Consumers are becoming increasingly aware of the environmental and social impact of corporations. They want to support corporations that make a positive impact in the world. 


    Beyond moral and environmental reasons, many believe that ESG practice is necessary for business sustainability. In this era, companies are susceptible to reputational risk: they can no longer run and hide from mistakes made.

  • Why is ESG important to investors?

    Increasingly, consumers want to invest in companies that share their values and make a positive difference in the world. 


    According to the US SIF Foundation’s 2018 Report on US Sustainable, Responsible and Impact Investing Trends, as of year-end 2017, more than one out of every four dollars under professional management in the United States—$12.0 trillion or more—was invested according to SRI strategies.

     

    ESG tends to be especially important to Millennials. This younger generation is driving the growth of the ‘green bond’.


    Additionally, now that we have long track records and data, it’s evident that ESG-related investments demonstrate equal or better risk-adjusted performance than their traditional counterparts. 


  • How does ESG affect financial performance?

    Across all sectors, ESG investments achieve financial returns that are on-par or better than their traditional counterparts. 


    Furthermore, companies with sustainability practices demonstrate better operational performance, have more predictable cost structures (a lower volatility) and suffer less reputational risk. 

  • What are some common metrics for ESG?

    Some common measurements:


    • Environmental: Greenhouse Gas Emissions, Water Use, Water Pollution, Waste Generation, Energy-Generation Mix
    • Social: Criteria examines how a company manages relationships with employees, suppliers, customers, and the communities where it operates. 
    • Governance: metrics with the company’s leadership, executive pay, audit, internal controls, and shareholder rights, diversity

    To learn more, the United Nations’ 17 Sustainable Development Goals (SDGs) is a good source to review.

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