February 2, 2024
February 2, 2024
 min read

Sustainable Companies fare financially better in the future!

Multiple studies reveal that sustainability is a trend topic with noticeable positive impact on the behaviour of consumers and employes and the credit risk of companies.

But there didn't used to be organic products 🥗 everywhere and conscious living should be a no-brainer?

Sustainability, ESG, green planet, organic, circular economy, and responsible business, and many other topics have become indispensable today.

According to Statista, for example, total sales of organic food reached a new record high in 2022 - the German food trade generated around 15.31 billion euros from the sale of organic food (Statista, 2022).

These are not just popular topics and a clear trend; they also have a major impact on the economy. The demand for sustainable products and solutions is high and promises increasing sales, which in turn means a huge opportunity for companies and implying investment opportunities for investors! 📈

In addition to the obvious benefits for everyone, such as protecting the environment and helping to shape a liveable or sustainable future, ESG-led business practices harbour several opportunities for companies. However, unlike the example above, these opportunities are often not recognisable at first glance.

Employees and consumers are paying increasing attention to sustainability

According to a recent Stepstone study of more than 2,600 employees in Germany, sustainability is a top priority as:

68% of participants consider sustainability a key factor when choosing an employer (Statista, 2023)

Another survey conducted by WFO Osnabrück in 2021 even confirms this:

(...) half of the respondents stated that they would be prepared to change their place of residence for an employer that strives for sustainability. Almost a third would even be prepared to sacrifice their salary. WFO, 2021

Consumers are also paying increasing attention to ESG indicators when it comes to consumption. McKinsey revealed in an article from 2021:

Three quarters of German consumers pay attention to the sustainability of products when shopping. McKinsey, 2021

The EU Taxonomy has the task of putting sustainability on a standardised footing and enabling comparability. It is therefore an ideal instrument for responding to the points mentioned above. VIRIDAD in tandem with the advice of our experts and its partners will help you reach your goal comfortably, compliantly, and efficiently.

Investing in more sustainable companies pays off in the long term!

Contrary to the long-held belief that sustainability is costly and uneconomical, it turns out that investors also greatly benefit from ESG investments. A scientific study shows that portfolios with particularly good ESG ratings actually perform significantly better than others (Andre Höck et al., 2023).

The reason for this is that portfolios with a good ESG rating have a significantly lower default risk. Portfolio-companies with outstanding sustainability performance are much safer and therefore more sustainable. 😊

the higher the sustainability, the lower the credit risk (Andre Höck et al., 2023)
High sustainability means more investments

For such companies, this means a higher valuation and therefore, lower financing costs.

So, we can all see that the more sustainable a company is, the more it benefits investors, companies, employees, and, quite simply, everyone (including our planet)!

The EU Taxonomy Regulation is the instrument to make sustainability visible and a good lever to encourage more companies to act sustainably.

Where does your company stand?

Our experts can answer all other questions!

Of course, we also have an answer to the most important question: how to achieve compliance efficiently and competently with the EU Taxonomy and at the same time master the reporting.

If your company needs support in taking the step towards sustainability, VIRIDAD will be happy to help. We are the right partner for you when it comes to the EU taxonomy! 💯