19 Sep Study highlights the need for closer monitoring of ESG progress within UK businesses
A recent study has suggested that half of UK-based business leaders believe no significant progress has been made in gathering and interpreting data on delivering vital environmental, social and governance (ESG) plans. The survey of C-suite leaders at various UK businesses was produced by data specialists, Profusion.
Without generating structured baseline data and delivering ways of showing progress, there is a potential risk that goals won’t be achievable. In the study, under 40% of those surveyed stated that their business supports ESG plans with a clear, actionable plan with clear KPIs. Aside from the possible impact on our planet, the lack of decisive action and transparency impacts confidence in business plans. The survey suggests that 56% of corporations do not provide their team or relevant stakeholders with access to a dashboard to determine how the business is performing and meeting targets.
These results come when we are experiencing growing evidence that employees are demanding more transparency on sustainability performance from companies. A 2023 study from SaveMoneyCutCarbon discovered that 20% of UK employees wouldn’t consider working for a business if sustainability wasn’t a priority.
Natalie Cramp, the CEO of Profusion, explains a rising demand for business leaders to implement ESG measures, but many are struggling to implement the necessary mechanisms to monitor impact and progress. Without these actions, many companies are struggling to make decisive changes.
As Cramp explains, for policies to have a real impact, businesses must utilise reliable and accurate data and empower teams to access and, more importantly, interpret the data. This enables companies to expand their plans and improve them where necessary. The survey also emphasised the stark imbalance regarding the level of priority business leaders give each area of the ESG agenda. 70% of those surveyed consider the environmental factors of the agenda as a top priority. The other 30% believe the environmental factors are evenly spread, with other governance and social factors. The priorities highlighted for governance were cyber security, risk management, diversity and inclusion.
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