The ESG Value Bridge: Understanding the financial value of sustainability | LSEG Sustainable Growth

How do ESG factors influence financial value? Jane Goodland sits down with Michel Driessen, auSustainable Growth: Michel Driessen episode review thor of 'Green Gold', to unpack the findings of his book. Drawing on his experience in private equity, transactions and restructuring, Michel explains the concept of the ESG Value Bridge, how sustainability is assessed in M&A and due diligence processes and why investors are increasingly looking beyond compliance to identify value creation opportunities. 0:00 Michel's career: A portfolio of activities 1:50 Why write 'Green Gold'? The gap in ESG financial literature 2:51 Research process: Interviews and practical case studies 4:22 Unpacking the ESG value bridge 6:33 Private equity and ESG: From compliance to value creation 10:15 Palm oil case study: Trade-offs in sustainability decisions 13:31 Value destruction: Risks, reputation and market impact 17:06 ESG ratings and the need for deeper analysis 18:35 2030 ESG outlook: AI, data standardisation and regulation Listen to the full series here: LSEG Sustainable Growth Podcast To listen on your preferred podcast platform go to https://pod.link/sustainable Subscribe now for more videos like this one @LSEGplc If you have any questions about this episode, financial markets or the economy, please leave us a comment or email [email protected]. LSEG (London Stock Exchange Group) is a diversified international markets infrastructure business —earning our clients’ trust for over 300 years. That legacy of customer-focused excellence ensures that you can rely on our expertise in capital formation, intellectual property and risk and balance sheet management. As global leaders in financial indexing, benchmarking and analytic services, we offer unrivalled access to international capital markets. Our high-performance technology solutions enable companies worldwide to access funds for growth and development. And with our Data & Analytics, Capital Markets and Post Trade divisions, we provide a comprehensive, integrated suite of trusted financial market infrastructure services that help our customers pursue—and achieve—their ambitions. That’s how we make a difference— ensuring people can meet their potential—worldwide. Follow us on LinkedIn (linkedin.com/company/london-stock-exchange-group) and Twitter (@LSEGplc). #SustainableGrowth #MichelDriessen #SustainableValueCreation #ESGValueBridge #SustainableFinance #PrivateEquitySustainability