Survey says More Regulatory Guidance would Encourage Corporate ESG Efforts
A Brief Summary
A survey conducted by Consultancy Alcumus revealed most companies are giving due diligence to environment, social and governance (ESG) while updating their strategies. Meanwhile, half feel not to invest due to poor guidance.
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The survey covered more than 600 senior managers and professionals from distinct business backgrounds across the US, UK and Canada. Around 90 per cent of the respondents said they included ESG considerations while drafting policies and strategies. Around 43 per cent said not having ESG considerations but expressed their willingness to include so by 2025.
According to the survey, Larger business organisations are more ESG-driven than their smaller counterparts.
The most commonly cited deterrents from the survey towards ESG investments are one, lack of technical understanding. Two, lack of guidance from the regulators.
More than two-thirds of the professionals surveyed said they invested in technology and processes to enhance the collection of ESG-related data. The organisation covered in the survey said their data gaps include accessing information from the supply chains and employees working from remote places.
“These are still tough times, but companies are not just in survival mode - there is a clear focus on ‘building back better’ post-pandemic,” said Alcumus’ senior vice president of sustainability David Picton.
“Many are using the situation as a catalyst to revisit the viability of their business models and make changes to thrive in the future. Addressing ESG plays a key part in this, but to demonstrate long-term impact and change, it is critical to have data and evidence.”