Country for PR: United Kingdom
Contributor: PR Newswire Europe
Thursday, December 08 2022 - 22:16
Infosys Research: Nine out of Ten Executives Report ESG Delivers ROI
BENGALURU, India, Dec. 8, 2022 /PRNewswire-AsiaNet/ --

High-performing companies view ESG as value creator, with senior executive 

    Increased ESG investment correlates with higher profits, according to new 
research 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. The report identified actions that companies should take now to 
achieve ESG goals and generate financial returns across sustainability 

    The Infosys report, ESG Redefined: From Compliance to Value Creation, 
reveals that nearly all (90%) executives said their ESG spending led to 
moderate or significant financial returns. Most respondents (66%) experienced 
ESG returns within three years. The report acknowledges that despite ESG's 
clear link to profit growth, budgets are likely to be an obstacle in the 
current economy. This is worrisome, as companies need more financial resources 
and operating model changes to achieve ESG goals and sustain profit growth.

    Mohit Joshi, President, Infosys, said, "There is nothing novel about the 
idea that you have to spend money to make money. However, although 90% of 
respondents in our study say ESG gives ROI, there is still a lag in applying 
strategy to ESG as it is done for other parts of their businesses. Companies 
must shift views to recognize ESG as a value creator to reap the financial 
benefits of ESG investments and to achieve maximum impact in creating a better, 
more sustainable world."

    Strategy alignment and execution will allow businesses to accelerate their 
ESG initiatives with greater payoff. The Infosys Knowledge Institute revealed 
several insights to guide companies to accelerate ESG's financial rewards: 

    - ESG is a proven moneymaker. The report found that a 10 percentage point 
increase in ESG spending correlates with a 1 percentage point increase in 
profit growth. A company that currently spends 5% of its budget on ESG can 
expect a one percentage point profit increase if it aligns operating or capital 
budget to increase ESG spending portion to 15%.
    - Overlooking the 'S' and 'G' in ESG reduces profitability. Many companies 
focus ESG efforts on the environmental segment with commitments to carbon 
neutrality, net zero, and reducing greenhouse gas emissions. However, there are 
also opportunities to improve financial results through social and governance 
initiatives. Research data shows social initiatives like board diversity 
correlate to improved profitability.
    - ESG leadership strategy correlates with a 2 percentage point increase in 
profit and revenue growth. Companies perform better financially when they 
demonstrate all the following: a chief diversity officer (CDO), chief 
sustainability officer (CSO), ESG committee on the board, and also when the CSO 
clears capital expenditures for ESG initiatives. However, only about a quarter 
(27%) of those surveyed say their company has all four components in place. The 
survey data analysis also found that the C-suite and top executive ranks were 
the most neglected areas for ESG changes. Only 19% of respondents say their 
company ties executive compensation to ESG goals, and just 30% say their firms 
place responsibility for ESG with the C-suite.
    - Supply chain transparency matters. Research found that almost all 
companies are interested in aligning their ESG goals with their supply chain, 
especially as more companies are expected to account for their scope 3 
greenhouse gas emissions. However, less than one-third share ESG expectations 
or requirements for suppliers. Only 16% say they renegotiate contracts based on 
ESG data from those in the supply chain — indicating a clear need for more 
leadership in the supply chain and incentives to share ESG data, whether it's 
meeting new contract requirements or making themselves more appealing to others 
in the supply chain.

To read the full report, visit here 


    Infosys used an anonymous format to conduct an online survey of 2,500 
business executives across industries across the US, UK, France, Germany, the 
Nordics, Australia, New Zealand, China, and India. To gain additional, 
qualitative insights, the researchers interviewed subject matter experts and 
business leaders.

    About Infosys

    Infosys is a global leader in next-generation digital services and 
consulting. Over 300,000 of our people work to amplify human potential and 
create the next opportunity for people, businesses and communities. With over 
four decades of experience in managing the systems and workings of global 
enterprises, we expertly steer clients, in more than 50 countries, as they 
navigate their digital transformation powered by the cloud. We enable them with 
an AI-powered core, empower the business with agile digital at scale and drive 
continuous improvement with always-on learning through the transfer of digital 
skills, expertise, and ideas from our innovation ecosystem. We are deeply 
committed to being a well-governed, environmentally sustainable organization 
where diverse talent thrives in an inclusive workplace.

    Visit to see how Infosys (NSE: INFY) (BSE: INFY) (NYSE: 
INFY) can help your enterprise navigate your next.

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    Source: Infosys