Infosys survey finds that companies should take action now to achieve ESG goals and achieve financial rewards through sustainability initiatives . 90 percent of executives said that their ESG investments yielded moderate or high financial returns .
According to recent results from the Infosys Knowledge Institute, the thought leadership and research arm of Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, Bengaluru (Karnataka), December 8 (PRNewswire): Increased ESG investment correlates with higher earnings.According to the Infosys survey, ESG Redefined: From Compliance to Value Creation, companies should take action now to achieve ESG goals and achieve financial rewards through sustainability initiatives.Nearly all (90 percent) executives said that their ESG investments yielded moderate or high financial returns.The majority of respondents (66%) saw ESG improvements within three years.
To achieve ESG goals and sustain profit growth, companies need more financial resources and business model improvements, according to Mohit Joshi, President of Infosys.Despite the fact that 90 percent of respondents in our survey said that ESG gives a return on investment, there is also a delay in applying strategy to ESG when it applies to other areas of their businesses.To reap the financial rewards of ESG investments and have a maximum effect in fostering a more equitable, more equitable world, businesses must rethink their strategy to ensure that their efforts have a higher return.The Infosys Knowledge Institute provided several recommendations to help organizations increase ESG's financial rewards:-ESG is a proven moneymaker. If it aligns its operating or capital budget to increase ESG spending portion to 15 percent, a company that spends 5 percent of its budget on ESG can expect to see a one percentage point increase in profitOverlooking the S and G in ESG reduces profitability.Many businesses place their ESG efforts in the environmental context, committing to carbon neutrality, net zero, and reducing greenhouse gas emissions.However, there are also opportunities to improve financial results by means of social and governance initiatives.According to research results, social commitments, such as board diversity, contribute to increased profitability An ESG leadership strategy correlates with a 2 percentage point increase in profit and revenue growth. However, only about a quarter (27%) of those surveyed believe their company has all four components in place.The C-suite and the top executive ranks, according to the survey results, were also the most overlooked areas for ESG improvements.Only 19 percent of respondents believe their organisation aligns executive compensation with ESG objectives, and only 30 percent believe their organizations share responsibility for ESG with the C-suite.According to the survey, almost all companies are interested in coordinating their ESG goals with their supply chain, particularly because more businesses are expected to account for their scope 3 greenhouse gas emissions. Only 16% of respondents renegotiate contracts based on ESG data from those in the supply chain, indicating a clear need for more representation in the supply chain and incentives to share ESG data, whether it be meeting new contract requirements or making themselves more attractive to others in the supply chain, according to MethodhodologyInfosys.The researchers sought out subject matter experts and business leaders to gain additional, qualitative data.Infosys is a global leader in next-generation digital services and consulting.Over 300,000 of our workers work to unlock human potential and create the next opportunity for individuals, businesses, and communities. We enable them with an AI-powered core, empower the company with agile digital at scale, and drive constant improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem.We are dedicated to being a prosperous, environmentally sustainable company where diverse talent thrives in a plural environment, and we encourage you to visit our website to find out how Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY) can assist your organization in navigating the next big change.Safe HarborAverageRisks and uncertainties in this release include forward-looking statements about our future growth prospects, financial objectives, and plans to address the consequences Risks and uncertainties relating to COVID-19 and the consequences of government and other measures to curb its spread, changes in economic, industrial, and economic conditions, wage increases in India and the United States, our ability to compete in IT services, wage increases, industry sector concentration, capacity to scale our international operations, decrease in demand for technology in our key focus areas, political instability and regional conflicts, non-conformities to government initiatives, changes in economic policy, and government investigations.Our annual report on Form 20-F for the fiscal year ended March 31, 2022 contains additional risks that may affect our future financial results.These forms are available at.. Infosys may make additional written and oral forward-looking statements from time to time, including statements contained in the Company's SEC filings and our shareholder reports.