Depending on the industry there could be environmental fines associated with the operating of the business.

Ethical investing may be the investors intentions therefore disclosure of information has become important for companies to attract said investors.

Investors will not want to be associated with companies with negative ESG due to the effect it could have on their other investments / personal brands.

Considering the social element, usually workforces with greater social values work better as a team and this could propel a business into performing better.