The core to our 2023 ESG outlook has been anchored on the energy trilemma of (i) affordability; (ii) security; and (iii) sustainability, in harnessing a just, and orderly transition to net zero. As we look to 2024, we permutate the conversation to the corporate trilemma of (i) growth; (ii) profitability; and (iii) sustainability. That is, in a world wherein ESG’s decibels of debate are rising and corporate budgets are being squeezed on the back of a higher for longer rates environment, we ask whether making growth sustainable and inclusive requires inscrutable trade-offs – forgoing revenues and profits for the sake of sustainability.
Ehsan Khoman, Head of Research – Commodities, ESG and Emerging Markets (EMEA), believe that whilst ESG as an ecosystem is still maturing, the direction of travel in our view is crystal-clear – not only can you do well while advancing ESG, you can outperform. As portfolios evolve in 2024, we believe that companies which gallantly pursue stronger growth and profitability while concurrently improving their ESG performance, will deliver superior shareholder returns.
Click here for our comprehensive presentation on MUFG's ESG outlook for 2024.
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