Chemical industry

Impact finance is proving its worth

Why sustainable businesses perform better financially

7 Mins
16/04/2026

Sustainable business practices and profitability are often seen as mutually exclusive. However, recent research shows that impact-driven companies perform better financially than non-impact-driven companies. In the Belgian chemical sector, sustainability has even been shown to be a strategic lever for profitability and resilience.

This finding was central to the research conducted by Priya Vyncke, who holds a Master’s Degree in Business Economics (Corporate Finance). For her award-winning master’s thesis, The Return of Impact Financing, she analysed, using data provided by GraydonCreditsafe, the financial performance of impact companies versus non-impact companies within the Belgian chemical sector. Her conclusions are clear and relevant for directors, investors and strategists.

What is impact finance?

Impact finance refers to investments in companies that, in addition to financial objectives, also aim to achieve social and environmental impact. These are businesses with a long-term vision, which prioritise sustainable value creation and take responsibility towards the environment, employees and society.

Unlike traditional investments, which focus primarily on short-term returns, impact financing combines profitability with sustainability. This is closely aligned with the ESG framework, which assesses environmental, social and governance factors.

How do you recognise an impact company?

A key finding of the study is that there is no universal definition of an impact company. For this reason, a combination of ESG indicators and qualitative screening was used.

In practical terms, this means:

  • Companies with high ESG indicators (8 or higher)
  • Demonstrable sustainability ambitions (e.g. carbon neutrality)
  • Investments in social and environmental initiatives
  • Focus on long-term sustainable business practices

This combined approach has proven reliable: in most cases, ESG indicators also reflect effective actions and strategic choices.

Why the Belgian chemical sector?

The Belgian chemical sector is economically vital and socially prominent. Chemicals are found in virtually every product and value chain, giving the sector a significant potential impact on people and the environment.

At the same time, the sector is under pressure from:

  • stricter regulations
  • international competition
  • sustainability expectations
  • economic volatility

This makes it particularly well-suited to analysing the link between sustainability and financial performance.

Impact-driven companies perform better financially

The key conclusion of the study is unequivocal: impact-driven companies achieve better financial results than non-impact-driven companies. This is evident from, amongst other things:

  • a higher return on assets
  • more stable profitability
  • more efficient use of raw materials

The effect is most evident in sub-sectors such as rubber and plastics. Companies that focus on recycling and efficient use of materials lose fewer raw materials, reduce their costs and increase their margins. Here, sustainability translates directly into profitability.

Shock resistance and financial resilience

In addition to profitability, shock resistance was also examined: the ability of companies to absorb external shocks.

It is striking that:

  • locally rooted impactful companies often have stronger cash reserves
  • Belgian subsidiaries of international groups are more vulnerable
  • reserves are often centralised within foreign parent companies

This is crucial for risk management, credit analysis and governance. Financial resilience appears to be stronger among companies that manage their resources locally and deploy them strategically.

Sustainability and the P&L: not a contradiction

For directors and investors, the conclusion must be clear: sustainability and profitability reinforce one another. Companies that invest in impact today:

  • are better prepared for shocks
  • mitigate operational risks
  • build reputation and trust
  • create long-term value

Even when reporting requirements are temporarily relaxed, the underlying risks remain. Climate change, regulation and social pressure are not going away and will sooner or later be reflected in the figures.

Europe and the future of impact businesses

Despite international headwinds, Europe remains committed to sustainability and ESG. This requires consistency and long-term thinking, but at the same time provides a strategic advantage.

Impact finance is not an ideological choice, but a rational economic strategy. Companies that embrace this vision position themselves as future-proof players in a volatile world.

Conclusion

Impact finance delivers demonstrable financial benefits. Impact companies perform better, are more resilient and create sustainable value. For those who wish to look ahead strategically, impact is not an option but a necessity.

Frequently asked questions about impact finance

What is impact finance?

Impact finance involves investing in companies that, in addition to financial profit, also aim to achieve measurable social and environmental impact, with a clear long-term vision.

What is the difference between impact(ful) finance and traditional investments?

Traditional investments focus on short-term returns. Impact finance combines profitability with sustainability, social responsibility and future-proof value creation.

Do impact companies perform better financially than non-impact companies?

Yes. Research within the Belgian chemical sector shows that impact companies achieve higher financial performance on average, including in terms of return on assets and profitability.

What is the role of ESG indicators in impact companies?

ESG indicators measure how companies perform on environmental, social and governance issues. High ESG indicators appear to correlate strongly with effective sustainability strategies and better financial performance.

Why is sustainability important for corporate profitability?

Sustainable companies operate more efficiently, mitigate risks, build resilience and are better prepared for economic and environmental shocks. In the long term, this translates into stronger financial results.

What does shock resilience mean for companies?

Shock resilience refers to a company’s ability to absorb unexpected external shocks, for example through sufficient cash reserves and financial autonomy. Impactful companies often prove to be stronger in this regard.

Is impact financing relevant for SMEs?

Yes. Impact financing is not just for large enterprises. SMEs too can strengthen their financial resilience, creditworthiness and long-term position through sustainable choices.

Why is the Belgian chemical sector relevant for impact research?

The chemical sector in Belgium is economically significant, socially visible and closely linked to sustainability issues. This makes the sector particularly suitable for analysing the effect of impact financing.

Is ESG reporting sufficient to measure impact?

ESG reporting is an important starting point, but qualitative screening remains essential to assess whether sustainability ambitions are actually being translated into concrete actions.