Feb. 2, 2014 /3BL Media/ - Just how material are environmental, social, and governance issues becoming to the bottom line? Recent evidence increasingly says, very material. The latest exhibit is a new report, 10 Companies to Watch in 2014, published by Sustainalytics, the responsible and sustainable investment research firm. This report examines companies from ten industry sectors, including energy, financials, food and beverage, telecomm, and industrials, and grades their investment potential through an ESG filter.

What’s of real interest here is that the report is a mix of positive and negative ratings, with very detailed reviews of ESG opportunities and risks, of companies that are taking proactive action to address such issues, and those that are not. Examples are given of specific ESG issues and how they will affect operational and reputational factors in the coming year, with ratings from negative to positive, overall ESG scores, and rankings of relative positions within respective industries. It makes for some very insightful and very useful reading. Sustainalytics’ 10 Companies to Watch in 2014 is a must-read to guide investors in making profitable choices in the coming year, and in avoiding unprofitable ones.

I’m John Howell for 3Bl Media.