13 Apr Where does ESG stand now on the corporate agenda?
Environmental, Social and Governance (ESG) efforts have fallen in terms of corporate priorities, based on a new survey of business leaders suggesting that short-term mindsets, concerns of greenwashing and a lack of internal structure impact the progress of sustainability plans.
The annual sustainability survey conducted by the Harris Poll and supported by Google Cloud explored corporate attitudes toward ESG. The survey discovered that ESG plans declined from being the main priority for businesses to third in 2023, with many leaders claiming they feel pressured by external groups to de-prioritise sustainability. As a consequence, generating revenue and growth and optimising client relationships are the main priorities considered by respondents. While 85% of respondents admit that customers want to collaborate with sustainable brands, nearly 80% felt forced to achieve sustainability-based results with declining budgets. Furthermore, over 70% of respondents are willing to progress with sustainability plans but were sure how to do this.
Greenwashing, short-terminism and a failure to deliver goals were all regarded as key challenges facing companies. Corporate greenwashing was considered a significant concern, with nearly 60% admitting to inaccurately presenting their sustainability activities. Corporate greenwashing follows a broader issue concerning the lack of data, metrics and processes to deliver sustainability goals. Nearly 90% demand better management solutions to ensure sustainability is achievable and communicated accurately.
Over 80% of business leaders believe sustainability plans would be more effective if they contain a better structure with accountability. 83% believe agile teams would enhance performance. In response to the findings, Justin Keeble, the MD of global sustainability at Google Cloud, explained that despite the challenges, we should be optimistic that businesses will continue to focus on and prioritise sustainability. According to the report, nearly all have implemented at least one program to advance their sustainability plans, and participation in these plans remains relatively unchanged from the last year. Interest in organisational sustainability also remains strong, with over 80% of businesses stating they care more about sustainability than before. In the survey from the previous year, 90% of respondents said ESG was their top priority, with most suggesting they were prepared to adapt their business models to improve social and environmental impacts. Furthermore, over 70% of respondents said they regularly attended sustainability-focused meetings and over 60% were prepared to risk lower revenue in the short term to deliver long-term sustainability plans.
This year’s report includes a comprehensive analysis of the 2023 Business Leadership Survey of Energy and sustainability professionals. The survey explores the main drivers, challenges and opportunities in corporate sustainability and climate action for this year.
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