EDITOR'S DESK
A little good news
The results are in, and they look good for businesses with a conscience. In a new study of almost 1,200 large American public companies from 2013 to 2019, U.S. advisory firm Institutional Shareholder Services found a link between higher environmental, social and governance (ESG) ratings and better financial performance.
That connection could come down to the fact that more-profitable companies can afford to invest in areas that positively impact ESG, but profitability might also rise because a business is better at managing ESG risks, or it could be a bit of both, the researchers said. If the latter is true, they added, “good-esg initiatives drive up financial performance, which then provides the monetary resources to invest to be an even better-esg firm, which then drives up performance again, and so on.”
By contrast, businesses with poor ESG trak records may find themselves facing higher costs and lower revenue, partly because investors and customers stay away. Not great.
The results are also in for our first annual Business of Good awards (p.31), which honour B.C. organizations putting corporate social responsibility into practice. The winners and finalists show that doing good, whether it's in the community, by their employees or for the environment, squares with running a business. If it makes them more profitable, too, all the better.
We're very grateful to our judges— Darian Kovacs, Carol Liao, Matt O'grady and Mary Ellen Schaafsma— for choosing the top submissions in five categories, plus a special citation. And let's hear it for associate editor Nathan Caddell, who managed the awards and profiled all of the contenders. If your company didn't enter this year's competition, there's always next time.
What's next for B.C. is the subject of “The Best Intentions” (p.44). Drawing on a wide-ranging survey, Steve Burgess explores how British Columbians' wishes for a more sustainable tomorrow, plus control over what happens in their backyards, mesh with reality. Spoiler alert: running the province on electricity and taking back power from higher levels of government aren't necessarily as desirable or doable as they sound.
With bright futures ahead of them, the engineering and science grads in Dee Hon's 2020 education guide (p.56) decided to take things up another level by enrolling in leadership programs. For one student, it was a route to launching his own company: for others, it was a ticket to upper management. As the outcomes show, they all made a good choice.