How ESG Reports Boost Business Value

Do companies gain from sharing their environmental, social, and governance (ESG) practices? Let's explore the impact on their intangible assets. When a company starts investing in ESG, it can boost its intangible capital, like reputation and customer trust. As time goes on and ESG investments grow, the benefits start to outweigh the costs. But there's a catch. Once a company's ESG score reaches a certain point, adding more ESG investments doesn't give as much of a boost to intangible capital. It's like hitting a plateau. Have you ever wondered why this happens? Initially, investing in ESG can attract positive attention and improve a company's image. Over time, as the company commits more resources, these benefits become more significant. But eventually, the gains from additional ESG investments decrease. It's as if the returns on investment start to level off.