The social opportunity
for businesses

Beyond brand and engagement, the opportunity presented by ‘S’ factors goes further. Traditionally, ‘S’ factors have been seen as issues to negatively vet in any investment decision, but rarely a driving factor. For some survey respondents, social criteria were acknowledged to lag ‘E’ considerations, or to be addressed only in a general way, potentially as part of an overall reputational risk perspective. “That seems poised to change”, says Melissa Swain-Tonkin, Herbert Smith Freehills Partner specialising in corporate mergers and acquisitions (M&A). More than one-quarter of survey respondents recognised that ‘S’ factors also present an opportunity to access capital, and more than one-third identify growth opportunities for new markets, products or services.