
Public Company ESG Commitments
Doing good is good business.
Public market ESG trends are influencing expectations for private market companies and investors.
Public companies are actively adopting environmental, social, and governance (ESG) targets and transparency. Corporate commitments are driven by investor pressure, customer and employee demand, and regulatory expectations.
Investment mandates are shifting to incorporate ESG factors as a complement to traditional financial indicators. Bloomberg has forecasted that more than one third of global assets under management will have an ESG mandate by 2025 (1). Rather than a ‘feel good’ exercise, a growing body of research affirms that ESG integration is correlated with outperformance (2).
The following analysis of public corporate commitments is a guidepost for the evolution of private market ESG adoption.
1. Bloomberg Intelligence, “ESG assets may hit $53 trillion by 2025, a third of global AUM,” February 23, 2021, https://www.bloomberg.com/professional/blog/esg-assets-may-hit-53-trillion-by-2025-a-third-of-global-aum/.
2. Gunnar Friede, “ESG and Financial Performance: Aggregated Evidence from More than 2000 Empirical Studies,” Journal of Sustainable Finance & Investment, Volume 5 Issue 4 (October 2015): 210.