The reason is there is an assumption that companies with an ESG focus have a lower risk exposure. Not only this, but companies with an established corporate governance structure also form a more stable relationship with their customers and employees.
Being sustainable is also far-sighted, and preparing a sustainability report gives companies a tremendous opportunity. It creates transparency and satisfies the information requirements of the financial markets, stakeholders and media. It also places more emphasis on the importance of sustainability in company attitudes and employee awareness.