The global economy is facing mounting challenges amid inflationary pressures, a costof-living crisis and market uncertainty. While businesses will undoubtedly be preparing to navigate this financial downturn and looming recession it is crucial that they do not lose sight of their environmental, social, and governance (ESG) initiatives and policies. After all, ESG is tied to the entire business and outlines risks and opportunities which will drive long-term and potentially even shorter and medium-term value for companies. In the 2022 Forrester/Dun & Bradsheet study of over 260 decision-makers across the UK, US and Canada, four out of five (97%) respondents stated that their company’s current ESG strategy created a significant or transformational increase in revenue. In comparison, 81% of participants said their company had experienced negative consequences by failing to meet their ESG goals, the most common being increased operational risk (43%) and increased financial risk (38%). With an increased drive towards sustainability and reaching global net-zero goals, companies must find the right balance of investing in their ESG strategy to drive longterm value, against short-term economic turmoil. Mark Mellen Director of ESG Enablement at Workiva ECONOMIC UNCERTAINTY Amid Bus i ne s s & Economy Finance Monthly. 18
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