"While ESG data collection and reporting is the first step of a company’s ESG journey, it does not by itself lead to financial improvement. According to McKinsey, studies show that strong ESG performance is positively correlated with higher equity returns and reduction in downside risk."

Link: https://www.wolterskluwer.com/en/expert-insights/the-importance-of-esg-as-a-key-drive-of-corporate-performance