Cylad: ESG Initiatives Pursued by 70% Swiss Firms
Incorporating environmental, social, and governance (ESG) objectives as a fundamental aspect of a company's strategy has become more common in recent times. In Switzerland, as per a survey conducted by Cylad Consulting, 70% of companies surveyed have already embarked on ESG initiatives.
The drive to implement ESG has brought about a notable change in the perception of performance and operational practices. As sustainability gains prominence on various agendas, robust ESG factors can demonstrate to stakeholders that a company has the potential for further growth.
Cylad Consulting, an international management consulting firm, surveyed 76 Swiss companies in the industrial and services sectors to examine the uptake of ESG measures. The survey revealed that 70% of the companies have already implemented ESG initiatives, albeit to varying degrees of intensity and on different scales.
Over the next two years, Swiss companies' ESG strategies are expected to prioritise the environmental impact of their products and social issues outside their organisation. These areas are considered more important than governance by the majority of companies surveyed.
The survey found that most ESG initiatives are initiated by top management. In particular, CEOs are responsible for ESG criteria 67% of the time, followed by the board of directors at 35%.
This recognition of the significance of environmental and social responsibility is not limited to Switzerland. A study conducted earlier this year indicated that 75% of CEOs in the United Kingdom view ESG as equally important as profits.
Despite the majority of Swiss companies implementing ESG initiatives, many acknowledge that more progress is required. According to the survey, 58% of companies are not entirely satisfied with their businesses' environmental impact.
As the drive for greater sustainability in business intensifies, there are concerns about 'greenwashing,' whereby language associated with sustainability is used dishonestly for products or services that may not be genuinely sustainable. The European Commission has recently proposed a new directive to address this issue by penalising the practice and establishing common rules for EU companies.
To view and compare company ESG Ratings and Sustainability Reports across sectors, follow our Company ESG Profiles page.