Sustainability and Investment: Geert Arlman, S&P Global

Geert Arlman, commercial head of S&P Global’s ESG rating business in EMEA, says that ESG has been mentioned “more and more often” in investment meetings recently.

Arlman explains that while S&P’s traditional credit ratings look at a business’ ability to repay debt, the ESG side of the business determines whether businesses can withstand increasing ESG pressures and maintain compliance.

In addition, he says that ESG does not just boost the reputation of a business, but also can boost profits in the long run, especially on the social and governance side of things.

“The capital markets are pricing in good ESG,” he says. “For example, we’ve seen that ESG-linked transactions can benefit from better market access and thus reduced financing costs, directly impacting profitability.”