ESG and the energy transition have been at the forefront of company announcements—new partnerships, investments and decarbonization strategies—throughout the first half of 2021. The evolution of moving from announcements to detailed plans with measurable results is driving new scoring standards and streamlined processes for data collection to adequately measure results and progress. There is heightened investor scrutiny on greenwashing and ensuring investment decisions are made considering the spectrum of comparative metrics from the qualitative impact of investments.

Early ESG adopters are proving profitable results with value in top-line growth, reduction in costs, minimized regulatory interventions and optimized investments and capex. ESG’s impact on the fundamentals of equity valuation is demonstrating support for the relationship between ESG and financial performance.

Investors of capital are assessing fundamental questions such as, “Does the enterprise have a business model that faces threats from climate change and regulation? Are its social practices and policies optimized to attract and retain customers and human capital? Is its governance such that it can sustain unforeseen challenges?”

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