Jennifer Elder, CSP, CPA, a seasoned CFO focusing on sustainability and strategic business growth, led a conversation during the MACPA’s monthly town hall meeting on Aug. 19 about ESG, the investing principle that stresses the importance of environmental, social, and corporate governance issues. If you missed the meeting, here are three key takeaways:

• Investors love companies that are focused on ESG: Eighty-one percent of U.S. and 84% of European institutional investors plan to increase their allocations to ESG-related products. Additionally, 60% of institutional investors are recording higher yields on ESG investments, and 12% of individual investors have switched to more ethical or sustainable investments.

• Consumers and clients are demanding it: Thirty percent of consumers have stopped buying from a specific brand because of ethical or sustainability concerns. Thirty-two percent of consumers check whether a product is made from recycled materials, and 33% make buying decisions based on how much plastic a product or packaging contains.

• ESG has implications for our profession's search for talent: Seventy percent of workers and those looking for work are drawn to environmentally sustainable employers, and 49% of job seekers said they are willing to take a lower salary to work at an environmentally and socially responsible organization. Among leaders, 61% say business models should be pursued only if they generate profitable growth and improve societal outcomes at the same time. And 72% of say the risks related to climate change will significantly affect their operations, profits, or costs.

And one more thing …
There are plenty of opportunities for CPAs to make their mark in an ESG world, including through ESG reporting and assurance, benchmarking, advisory services, risk management, M&A due diligence, supply chain evaluation, and by identifying tax incentives, monetizing renewable energy tax credits, and securing funding and grants.

A good starting point, though, is to look at your internal operations and figure out where your organization can make a difference. Ask yourself: What's your sustainability sweet spot? Where do your business interests overlap with environmental issues?

Learn more here
If you'd like to watch the August town hall meeting in its entirety, it will be replayed at 11 a.m. ET on Sept. 10. Get details and register here.

• Download Jennifer's ESG slides here.
• AICPA resources on climate, sustainability and ESG
• CPA.com ESG services and resources