PR99136

BENGALURU, India, Dec. 8, 2022 /PRNewswire=KYODO JBN/ --

High-performing companies view ESG as value creator, with senior executive

accountability

    Increased ESG investment correlates with higher profits, according to new

research from the Infosys Knowledge Institute, the thought leadership and

research arm of Infosys (https://www.infosys.com/) (NSE: INFY) (BSE: INFY)

(NYSE: INFY), a global leader in next-generation digital services and

consulting. The report identified actions that companies should take now to

achieve ESG goals and generate financial returns across sustainability

initiatives.

    The Infosys report, ESG Redefined: From Compliance to Value Creation,

reveals that nearly all (90%) executives said their ESG spending led to

moderate or significant financial returns. Most respondents (66%) experienced

ESG returns within three years. The report acknowledges that despite ESG's

clear link to profit growth, budgets are likely to be an obstacle in the

current economy. This is worrisome, as companies need more financial resources

and operating model changes to achieve ESG goals and sustain profit growth.

    Mohit Joshi, President, Infosys, said, "There is nothing novel about the

idea that you have to spend money to make money. However, although 90% of

respondents in our study say ESG gives ROI, there is still a lag in applying

strategy to ESG as it is done for other parts of their businesses. Companies

must shift views to recognize ESG as a value creator to reap the financial

benefits of ESG investments and to achieve maximum impact in creating a better,

more sustainable world."

    Strategy alignment and execution will allow businesses to accelerate their

ESG initiatives with greater payoff. The Infosys Knowledge Institute revealed

several insights to guide companies to accelerate ESG's financial rewards:

    - ESG is a proven moneymaker. The report found that a 10 percentage point

increase in ESG spending correlates with a 1 percentage point increase in

profit growth. A company that currently spends 5% of its budget on ESG can

expect a one percentage point profit increase if it aligns operating or capital

budget to increase ESG spending portion to 15%.

    - Overlooking the 'S' and 'G' in ESG reduces profitability. Many companies

focus ESG efforts on the environmental segment with commitments to carbon

neutrality, net zero, and reducing greenhouse gas emissions. However, there are

also opportunities to improve financial results through social and governance

initiatives. Research data shows social initiatives like board diversity

correlate to improved profitability.

    - ESG leadership strategy correlates with a 2 percentage point increase in

profit and revenue growth. Companies perform better financially when they

demonstrate all the following: a chief diversity officer (CDO), chief

sustainability officer (CSO), ESG committee on the board, and also when the CSO

clears capital expenditures for ESG initiatives. However, only about a quarter

(27%) of those surveyed say their company has all four components in place. The

survey data analysis also found that the C-suite and top executive ranks were

the most neglected areas for ESG changes. Only 19% of respondents say their

company ties executive compensation to ESG goals, and just 30% say their firms

place responsibility for ESG with the C-suite.

    - Supply chain transparency matters. Research found that almost all

companies are interested in aligning their ESG goals with their supply chain,

especially as more companies are expected to account for their scope 3

greenhouse gas emissions. However, less than one-third share ESG expectations

or requirements for suppliers. Only 16% say they renegotiate contracts based on

ESG data from those in the supply chain — indicating a clear need for more

leadership in the supply chain and incentives to share ESG data, whether it's

meeting new contract requirements or making themselves more appealing to others

in the supply chain.

To read the full report, visit here

(https://www.infosys.com/about/esg/insights/esg-radar-report.html).

    Methodology

    Infosys used an anonymous format to conduct an online survey of 2,500

business executives across industries across the US, UK, France, Germany, the

Nordics, Australia, New Zealand, China, and India. To gain additional,

qualitative insights, the researchers interviewed subject matter experts and

business leaders.

    About Infosys

    Infosys is a global leader in next-generation digital services and

consulting. Over 300,000 of our people work to amplify human potential and

create the next opportunity for people, businesses and communities. With over

four decades of experience in managing the systems and workings of global

enterprises, we expertly steer clients, in more than 50 countries, as they

navigate their digital transformation powered by the cloud. We enable them with

an AI-powered core, empower the business with agile digital at scale and drive

continuous improvement with always-on learning through the transfer of digital

skills, expertise, and ideas from our innovation ecosystem. We are deeply

committed to being a well-governed, environmentally sustainable organization

where diverse talent thrives in an inclusive workplace.

    Visit www.infosys.com to see how Infosys (NSE: INFY) (BSE: INFY) (NYSE:

INFY) can help your enterprise navigate your next.

    Safe Harbor

    Certain statements in this release concerning our future growth prospects,

financial expectations and plans for navigating the COVID-19 impact on our

employees, clients and stakeholders are forward-looking statements intended to

qualify for the 'safe harbor' under the Private Securities Litigation Reform

Act of 1995, which involve a number of risks and uncertainties that could cause

actual results to differ materially from those in such forward-looking

statements. The risks and uncertainties relating to these statements include,

but are not limited to, risks and uncertainties regarding COVID-19 and the

effects of government and other measures seeking to contain its spread, risks

related to an economic downturn or recession in India, the United States and

other countries around the world, changes in political, business, and economic

conditions, fluctuations in earnings, fluctuations in foreign exchange rates,

our ability to manage growth, intense competition in IT services including

those factors which may affect our cost advantage, wage increases in India and

the US, our ability to attract and retain highly skilled professionals, time

and cost overruns on fixed-price, fixed-time frame contracts, client

concentration, restrictions on immigration, industry segment concentration, our

ability to manage our international operations, reduced demand for technology

in our key focus areas, disruptions in telecommunication networks or system

failures, our ability to successfully complete and integrate potential

acquisitions, liability for damages on our service contracts, the success of

the companies in which Infosys has made strategic investments, withdrawal or

expiration of governmental fiscal incentives, political instability and

regional conflicts, legal restrictions on raising capital or acquiring

companies outside India, unauthorized use of our intellectual property and

general economic conditions affecting our industry and the outcome of pending

litigation and government investigation. Additional risks that could affect our

future operating results are more fully described in our United States

Securities and Exchange Commission filings including our Annual Report on Form

20-F for the fiscal year ended March 31, 2022. These filings are available at

www.sec.gov. Infosys may, from time to time, make additional written and oral

forward-looking statements, including statements contained in the Company's

filings with the Securities and Exchange Commission and our reports to

shareholders. The Company does not undertake to update any forward-looking

statements that may be made from time to time by or on behalf of the Company

unless it is required by law.

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    Source: Infosys