GlobalData says 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.
Scepticism remains about leadership commitment
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. Only 19% believe companies are fully committed.
Cyrus Mewawalla, head of Thematic Intelligence at GlobalData says the reluctance of many CEOs to fully engage with sustainability can be attributed to the age-old view that it will hurt profits. He noted that GlobalData’s research reveals otherwise: 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."
Cyrus Mewawalla
The GlobalData report, ESG (Environmental, Social, and Governance) Top Trends by Sector – Thematic Research, revealed that only 16% of survey respondents believe ESG will impact their business the most in the next 12 months.
There will be consequences
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, says, “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.
She contends that 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."
Sapana Maheria
"COVID-19 and increased regulation still far outweigh other key themes in importance across most industries,” she opined.
