Table 1.

Overview of ESG benefits and costs

EnvironmentalSocialGovernance
BenefitsCostsBenefitsCostsBenefitsCosts
  • Description & Analysis

    • Understanding of the Earth

    • Climate prediction

    • Bio diversity

  • Optimization & Innovation

    • Energy efficiency

    • Reduction of waste

    • Efficient resource consumption

  • Energy consumption

    • Quicker depletion of finite energy resources

    • Increasing CO2emission

  • Consumption of other resources

    • Water use

    • Rare earths

  • Nourished economic systems

    • Productivity

    • Growth of wealth

  • Advanced political structures

    • Democracy

  • Improved health

    • Improved diagnostics

    • Innovative pharmaceutical products

  • Economic costs

    • Employment

    • Wealth and wealth distribution

  • Harmful political and societal structures

    • Discrimination

    • Reduced privacy

    • Polarization

  • Aggravated health

    • Loneliness

    • Dreary and devaluating jobs

    • Emotional harm

  • Better advice

    • More information for decision making

    • No trade-off between decision speed and quality

  • Efficient control

    • Transparency

    • Improved inter-organizational governance

  • Bad advice

    • Reduced decision quality

    • Less trust

    • Missing ethical foundation for decision making

  • Inefficient control

    • Power unbalance

    • Unclear accountability

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