ESG Not Taken Seriously by All Companies, Say 60% in GlobalData Survey

ESG Not Taken Seriously by All Companies, Say 60% in GlobalData Survey

For most companies, ESG is just a marketing exercise say respondents

The ESG Sentiment Polls Q1 2022 by GlobalData has found that 60% of people surveyed believe that companies are not taking ESG seriously—with a further 22% not sure, leaving only 19% believing companies are fully committed.

The leading data and analytics company notes that greenwashing is a serious risk for businesses—especially in today’s world, where businesses are increasingly held accountable by all stakeholders and neglecting ESG can have long-term adverse effects on performance.

Cyrus Mewawalla, Head of Thematic Intelligence at GlobalData, comments: “The reluctance of many CEOs to fully engage with sustainability can be attributed to the age-old view that it will hurt profits.

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"But, GlobalData’s 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.”

GlobalData’s latest report, ‘ESG (Environmental, Social, and Governance) Top Trends by Sector – Thematic Research’, discusses technology and macroeconomic trends driving ESG actions across 16 industries.

The report identified that only 16% of survey respondents believe ESG will impact their business the most in the next 12 months.

Those who were surveyed are concerned that their business is preoccupied with other issues such as the impact of COVID-19, increased regulation, trade disputes, and digital transformation.

Sapana Maheria, Director of Thematic Intelligence, said: “ESG is being considered by many businesses as ‘tomorrow’s problem’—a trend that will have a significant impact over the next decade but limited impact in the short term.

“Faith in the business community’s commitment to tackling ESG issues has not been restored at the beginning of 2022.

"Unless recordable progress is made, people will continue to question the effectiveness of governing bodies in imposing existing regulations on businesses to meet international emissions targets.

"COVID-19 and increased regulation still far outweigh other key themes in importance across most industries.”

Read More: ESG Ratings Giant EcoVadis Goes Unicorn With $500 Million Series C

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