Sustainability and Company Value

Businesses are navigating a period of transition where sustainability performance is gaining recognition in financial markets. This report examines how far that recognition extends, where signals  remain unclear, and how companies can adapt their strategies to create and protect value.

As we move from morality to materiality, sustainable performance is becoming more consistently disclosed and better understood by investors. This is increasingly shaping how markets assess value and risk, with the potential to incentivize transformation at scale. – Peter Bakker, President & CEO, World Business Council for Sustainable Development (WBCSD)

This paper reinforces WBCSD’s continued priority of focus on the Corporate Performance and Accountability System (CPAS) which seeks to better align the financial system with sustainable corporate performance.  

• A synthesis of over 60 academic and business studies, focused on developments since 2024.
• Evidence showing how sustainability performance influences company valuation and financing conditions.
• Practical guidance for integrating sustainability into financial and strategic decision-making.
• Insights on both short-term performance and long-term resilience.

Designed for C-suite executives and board leaders, this briefing helps decision-makers understand:

• How investor & lender expectations and market pricing are changing.
• The role of credible transition plans, transparent governance, and clear milestones in building investor confidence.
• How risk management, resilience, and growth are increasingly interconnected.

• Capital markets are starting to reflect sustainability performance in company valuations – emissions profiles and credible transition plans are influencing borrowing costs and investment spreads.
• Stronger sustainability performance supports growth and efficiency, reducing costs and improving resilience.
• Credibility is rewarded – companies that publish measurable milestones and link sustainability actions to business strategy, incentives, and capital planning build trust with investors. 
• Sustainability-linked financing can help diversify investors and reduce funding costs. 
• Delaying action carries significant risk.