How Covid-19 Has Accelerated the Garment and Financial Investment Industries’ Adoption of Environmental, Social and Corporate Governance (ESG) Standards

Pablo López Sarabia (), Silvia Rojas Padilla () and Ricardo González Díaz ()
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Pablo López Sarabia: Tecnológico de Monterrey, Campus Santa Fe
Silvia Rojas Padilla: Instituto Cervantes
Ricardo González Díaz: Tecnológico de Monterrey, Campus Santa Fe

A chapter in The Future of Companies in the Face of a New Reality, 2021, pp 37-62 from Springer

Abstract: Abstract The transition of the apparel industry to an ESG business model will have a cascading effect in the whole supply chain (upstream, midstream and downstream) and will generate greater value for all stakeholders. The ESG investments are registering exponential growth in equity and fixed income markets due to the following benefits: 1) lower risk and long-term stability, 2) the returns of portfolios and indices with ESG criteria are not inferior to traditional investment, 3) the positive externalities associated to ESG criteria and 4) the reputation and gain of market share by responding to the demands of a new generation of consumers willing to pay a surcharge for sustainable goods and services that consider ESG criteria. Currently there are expectations that once the Covid-19 crisis is over there will be a grand quantity of capital inflows toward ESG investments on emerging markets, a situation that will drive the transformation of companies; particularly those that have made progress in incorporating ESG factors like the utilities and financial sector.

Keywords: Apparel industry; ESG investment; COVID-19 pandemic; ESG metrics (search for similar items in EconPapers)
JEL-codes: G11 G30 L20 L67 M14 O16 Q50 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/978-981-16-2613-5_3

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