2021-08-25 00:00:00, Robert Rapier, Forbes
Content Categorization
/People & Society/Social Issues & Advocacy
Word Count:
636
Words/Sentence:
18
Reading Time:
6.36 min
Reading Quality:
Advanced
Readability:
16th or higher
The study found that companies with high ESG scores experienced lower costs of capital, lower equity costs, and lower debt costs compared to companies with poor ESG scores.
They cite more than 2,000 academic studies that concluded better ESG scores translate to about a 10% lower cost of capital.
ESG policies discourage businesses from relying solely on financial metrics and encourage broader environmental metrics in their decision-making.
Whether viewed as an opportunity to be seized or a problem to be solved, the energy sector is squarely focused on achieving measurable ESG results.
In response to this growing trend, most companies have developed policies on Environmental, Social, and Corporate Governance (ESG).
Keywords
governance, social, Energy Sector, environmental, ESG
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