ESG a “must have” today & is proving to be good business Stakeholders demanding more Businesses reaping reward for ESG focus Consumers demand prioritization of ESG initiatives Studies show strong link ESG & company performance • ~90% want companies to go even further • Margin premiums ~3-8% for ESG initiatives across • 75% Gen Z research to ensure brand “walks the talk” consumer goods, pharma, O&G, financial services, etc. • ESG Funds beat market at 1, 3, 5-year horizons (2019) Increasing willingness to pay ESG “premium” • 75% will pay ~5% sustainability premium Companies large and small reap rewarded for ESG focus • Revenue growth and cost savings drive bottom-line Investors increasingly use company ESG records to • E.g. Unilever, patagonia, LuDeim, Walmart, Heineken make decisions • 80% use ESG ratings/certifications when investing Meta-studies confirm link ESG - financial performance • 1/3 of AuM in US ($17T) & >40% globally ($41T) in 2020 • Analysis of >2000 studies: ESG focus 8x more likely to have positive (vs. negative) impact on equity returns • Fidelity: high ESG rated companies outperform in both bull and bear markets Strong ESG credentials foster brand recognition, trust, and customer loyalty Cone Communications CSR Survey, 2017 Navex ESG Survey, 2020