Faith in sustainability is not strong as less than a fifth (19%) of people actually believe most businesses are committed to ESG strategies.
Furthermore, 30% believed ESG was just a marketing exercise or most companies and 22% didn’t know, according to data from GlobalData.
Based on GlobalData’s ESG Sentiment Polls Q4 2022, 32% of respondents stated that their company has an ESG strategy.
The majority of respondents (68%) were either unsure about having an ESG plan in place (34%), or had none at all (34%).
Regardless of how much emphasis is placed on sustainability and social responsibility, conviction in the efficacy of environmental, social, and governance (ESG) policies is declining.
According to GlobalData, a renowned data and analytics firm, this strategy raises worries about corporate operations’ long-term survival and underscores the need for organisations to recommit to their ESG aims.
Cyrus Mewawalla, head of thematic intelligence at GlobalData, comments: “The reluctance of many CEOs to fully engage with ESG can be attributed to the age-old view that it will hurt profits. However, our research suggests the opposite. Companies that embrace all three elements of ESG will outperform their peers. CEOs that are too slow to improve their company’s approach to sustainability will see an exodus of customers and a drop in profits far sooner than they ever imagined.”
In GlobalData’s most recent study, “Global Environmental Trends by Sector, 2022 – Thematic Intelligence,” climate change and related themes (such as heatwaves, emissions, deforestation, and water shortages) were prominent in 2022.
Financial institutions, industries, and governments have increased their efforts to line with the United Nations’ Sustainable Development Goals (SDGs).
This trend is likely to continue in 2023.
GlobalData’s ESG framework is an important management tool for assessing a company’s ESG performance.
This can help uncover variables that contribute to poor ESG outcomes and provide insights into strategies that can be implemented to improve the company’s ESG performance.
The ESG framework developed by GlobalData is an effective management tool for assessing a company’s ESG performance.
It can help identify the root reasons of poor ESG performance and provide direction on measures that can be implemented to improve the company’s ESG performance.
Mewawalla concludes: “As the world continues to grapple with climate change and other environmental challenges, the importance of ESG performance is only set to grow. The growing efforts of financial institutions, businesses, and governments to align with the UN’s SDGs demonstrate a growing recognition of the urgency of the challenge at hand. Companies that embrace this trend and take meaningful action to improve their ESG performance are likely to be the ones that thrive in the years to come.”
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