The sustainability assessment, instead, implies a forward-looking long-term view, which could help to mitigate the “short-termism” that often drives financial investments. –  Third, good ESG practices seem to provide firms with a competitive advantage stemming from innovation.
They also contribute to reducing operational, legal and reputational risks and lead to a more efficient resource allocation, as resources can be shifted from risk management to productive activities. This lowers the cost of capital and improves market performance. The second issue concerns the problems related to ESG scores.