1. DGB Group Knowledge Center
  2. Advantages of environmental sustainability

How does corporate sustainability influence investor decisions?

Investors increasingly consider Environmental, Social, and Governance (ESG) factors when making investment decisions. Businesses that prioritise sustainability are more likely to attract investments from ESG-focused funds and socially responsible investors. These investments provide additional capital for expansion, innovation, and research and development. According to a study by Harvard Business Review, companies prioritising sustainability have better financial performance and lower cost of capital, attracting more investors. ESG performers also enjoy higher valuations by a margin of 20%. Corporate sustainability is therefore key not only to environmental wellbeing but also financial success.