EY’s Post

EY, It’s clear that investors are rethinking the balance between short-term profits and long-term sustainability. Here’s what stands out: - Investors are increasingly hesitant to sacrifice short-term returns for long-term sustainable gains. - Two-thirds of investors believe ESG factors will have less influence on future investments. - Greenwashing is becoming a major concern, with 85% of investors now more worried about it than five years ago. - Companies need to prove their commitment to sustainability—not just talk about it. - Clear and honest non-financial reporting is essential for building trust with investors. - Investors want to see real action, not just empty promises, when it comes to environmental and social impact. - Balancing profit with purpose is challenging but necessary for sustainable growth. - It’s no longer enough to claim sustainability; investors want evidence. - Transparency in sustainability efforts will become a critical factor in investment decisions. - The shift toward responsible investing is here—companies must adapt or risk losing investor confidence. The pressure is on businesses to demonstrate true commitment to sustainability, and investors are watching closely.

Balancing short-term and long-term gains in an ideal strategy can provide the best of both worlds. This approach allows for taking advantage of immediate opportunities while ensuring long-term financial security and growth. By evaluating your goals, risk tolerance, and time horizon, you can decide which approach—or combination thereof—best suits your needs. Whether you're planning for retirement or looking to capitalize on market trends, understanding the pros and cons of each can help you make informed decisions.

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The EY survey reveals that 92% of investors prioritize short-term gains over long-term ESG rewards, even as concerns like greenwashing grow. This highlights the urgent need to rethink strategies. Long-term value and resilience often stem from sustainable practices. By integrating ESG factors, investors can enhance returns and address global challenges. At ALBATROSS CONSULTING LTDA we keep questioning on how can we balance immediate financial goals with the responsibility to secure a sustainable future?

The findings from this survey highlight a key challenge for investors balancing short-term gains with long-term sustainability goals. At GrowthJockey, we understand that while ESG factors are important, businesses must also consider immediate returns. However, addressing concerns like greenwashing and ensuring transparent reporting are crucial for fostering trust in sustainability investments.

A striking insight into the challenges of balancing sustainability with investor priorities. Transparency and genuine commitment are key to bridging this gap. Join ExpertGate to explore greater solutions.

It's inspiring to see EY shedding light on the importance of sustainable investing despite the current challenges.

Well that could be because there are more current loans payable which requires immediate attention and hence they look towards short term gains rather than longer term gains

Very insightful and something that can be observed also in the day-to-day life of consulting firms in their sustainability practices and reporting.

Unfortunately, I've witnessed this all too often—not just in crucial areas like sustainability. Short-term gains achieved over one year often outweigh the more substantial benefits that could be realized over 3, 5, or even 10+ years.