The text cites 'a proxy for good management' as one of the reasons why sustainability is an important issue to finance and investment decisions. Which option best explains why ESG performance is a good proxy for a company's managerial and financial performance?

Group of answer choices

High performing management teams are very conscientious and professional. Addressing sustainability issues is a good indicator of these desirable qualities.

Environmental factors $($cost of materials, impacts of extreme weather, etc.$)$ impact the markets. Managing sustainability well provides a competitive advantage.

Strong sustainability programs drive employee engagement and innovation. Engaged employees drive superior performance. Improved employee performance is the primary reason sustainability driven organizations outperform their peers.

Embedding sustainability into the DNA $($mission$,$ vision, values, business model$)$ of a firm opens new product and market opportunities. These in turn drive company growth and earnings, leading to superior performance.

All of the above are good reasons for superior performance of sustainability firms, compared to their benchmark peers.