Why invest in a company with a high ESG rating?
Companies with higher ESG ratings tend to be better at anticipating potential future risks and opportunities, more focused on value creation in the long term, and more adept at long-term strategic thinking. In short, if a company has a high ESG rating, it’s likely to place plenty of importance on long-term sustainability. At the same time, part of the reason for investing in a company with a high ESG rating may simply be that you want to prioritise more ethical and sustainable companies, but reviewing ESG is becoming more widespread for financial reasons too.