ESG Professionals Group

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  • 1.  The ROI of ESG for private companies

    Posted 07-03-2024 10:16 AM

    Hi all. I am not sure if this is the right forum to ask this question, but what are your thoughts and comments on the impact of having proper ESG governance and strong processes and controls on the ESG reporting process (including GHG disclosure) on the enterprise value of a private company if it goes public or gets acquired? This could depend on the industry, but I am curious whether making a significant investment in this particular area makes sense for a private company in general. Thank you for sharing your thoughts and comments.



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    Emmanuel Lee
    Director of Accounting
    Greenlight Financial Technology, Inc.
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  • 2.  RE: The ROI of ESG for private companies

    Posted 07-04-2024 12:50 PM

    The S&P ESG 500 has outperformed the overall index for the last 5 years 

    Deloitte has a study our on the impact of ESG on M&A 



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    Bob Hirth
    co-vice chair, SASB, Managing Director, Protiviti
    SASB, Protiviti
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    Original Message


  • 3.  RE: The ROI of ESG for private companies

    Posted 07-16-2024 09:45 AM

    Thanks Bob for commenting-hope you're doing well!

    I'm including the link for the Deloitte study Bob referenced and also noticed KPMG came out with a similar study today.

    Deloitte link

    KPMG link



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    Mark Mellen
    ESG SME
    Workiva
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    Original Message


  • 4.  RE: The ROI of ESG for private companies

    Posted 07-26-2024 04:40 PM

    This is a great question! I agree with the previous respondents - take a look at the Deloitte study. A couple of other things that I think it would be wise consider: 

    1. What are your competitors & others in your peer group disclosing? 
    2. How does your organization view ESG (i.e. are you viewing ESG reporting through an altruistic lens or a compliance focused lens)? I find that companies with a compliance focused view tend to lean towards bare minimum disclosure. 
    3. How do some of larger reporting regulations (CSRD, UK CFD, California SB 253 & 261, etc.) currently impact you? Not all reporting regulations are limited to public companies. ISSB is currently being transposed into national law across the globe & other states in the US (namely NY & IL) have proposed bills in congress, so may be helpful to take a look at those developments too. 


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    Sadie Rice
    ESG Controller
    Polaris
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    Original Message


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