How to determine where ESG can create value

Companies can integrate ESG goals into enterprise strategy in a multitude of ways that maximise shareholder value.

Companies can integrate ESG goals into enterprise strategy to maximise shareholder value.

08 June 2022

By targeting various environmental, social, and governance programs that impact shareholder value, CFOs and other corporate leaders can craft ESG strategies that balance financial benefits and costs.

In a new KPMG report, How to determine where ESG can create value, we show examples of ESG initiatives that can impact drivers of shareholder value at many points across the company. To achieve success, companies need to integrate ESG goals into enterprise strategy in ways that maximize value.

How to determine where ESG can create value

Making direct links between ESG and shareholder value is still difficult. But it is possible to link specific environmental, social, and governance activities to proven levers of value, such as increasing profit margin or lowering cost of capital. By tracking ESG activities across the organization, companies can prioritize those that contribute to shareholder value.

How to determine where ESG can create value

Making direct links between ESG and shareholder value is still difficult. But it is possible to link specific environmental, social, and governance activities to proven levers of value, such as increasing profit margin or lowering cost of capital. By tracking ESG activities across the organization, companies can prioritize those that contribute to shareholder value.