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An ESG score serves as a wake-up call, reminding board members of their ESG responsibilities, where risks and opportunities exist, and how they compare to the industry as a whole. Apart from determining its ESG stance, there are other explanations for why a corporation needs an ESG score. Maybe the most notable trend is the increasing growth of ESG investing, with investors followed by sustainable asset portfolios. With a demonstrated link between high performance on material ESG concerns and financial success, institutional and individual investors utilize ESG ratings to select firms likely to provide attractive returns.

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