Why ESG Matters

For Businesses

Companies that embrace ESG principles often benefit from:

• Improved brand reputation

• Increased investor confidence

• Better risk management

• Long-term financial performance

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A study conducted by two researchers at the University of St. Gallen, Switzerland, Daniel V. Fauser and Sebastian Utz founds that a company with low ESG performance, on average, will suffer an abnormal loss of US$ 1.14 billion in market value, about one time bigger than that of a company with high ESG performance. This could prove that ESG could provide enormous benefits for companies. 

For Society

ESG contributes to building a more sustainable and ethical world by reducing environmental harm, promoting social justice, and ensuring corporate accountability.

ESG in Everyday Life

We can look at one specific example who integrate the concept of sustainability and ESG into their sales promotion -- Boston Public Market.

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The Boston Public Market, located in downtown Boston, opened in July 2015. It features over 28 vendor stalls operating year-round and is open every day of the week. Managed by the non-profit Boston Public Market Association, vendors are carefully chosen by the organization. Notably, it was the first market in the U.S. to require all food sold to be locally sourced.

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Interestingly, some vendors in the market may have something near their booths like what is shown on the left.​

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These booths are characterized by their organic and eco-friendly products. In this way, the Boston public market promotes the sales of their foods and advocates environmental sustainability, which is a very important past in the concept of ESG. 

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ESG is not just for corporations and investors—it also applies to individuals. They are close to everyone. We may also commit to ESG principles by:

• Investing in ESG-friendly funds that prioritize sustainability.

• Supporting ethical brands that promote fair labor and eco-friendly production.

• Reducing carbon footprint by using public transport, eating sustainably, and minimizing waste.

• Advocating for social responsibility by supporting companies with strong diversity and inclusion policies.