The World Benchmarking Alliance (WBA) found that higher scores on core social indicators (CSIs) are “modestly but consistently associated with better financial outcomes”, including higher revenues and stronger returns on capital and assets.
WBA scored 1,00 globally significant companies (on a scale of 0-20) based on 18 CSIs – covering human rights, decent work and ethical conduct.
Accounting for company size and region, each one-point increase in CSI score corresponds to 1.27% higher revenue, a 0.39% improvement in return on capital employed, and a 0.17% increase in return on assets.
WBA also found that companies that have set science-based climate targets tend to grow 3% faster over a five-year period than peers that have not made these commitments.
Companies:World Benchmarking Alliance
