Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Most executives think their ESG programs fall short, survey finds

Published 09/15/2021, 10:34 AM
Updated 09/15/2021, 12:11 PM
© Reuters. FILE PHOTO: Aerial view shows a golf course next to desert landscape as the state faces its worst drought since 1977, in Palm Desert, California, U.S., June 29, 2021. REUTERS/Aude Guerrucci

© Reuters. FILE PHOTO: Aerial view shows a golf course next to desert landscape as the state faces its worst drought since 1977, in Palm Desert, California, U.S., June 29, 2021. REUTERS/Aude Guerrucci

By Jessica DiNapoli

(Reuters) - More than half of 530 corporate executives have little or no confidence in the reliability and maturity of their environmental, social and corporate governance (ESG) programs, according to a global survey from corporate governance advocacy non-profit OCEG.

The report paints a dim picture of the corporate world's perception of ESG initiatives, which vary greatly in ambition, disclosures and standards across companies and are increasingly coming under scrutiny from regulators concerned about "greenwashing".

While 78% of the executives think that ESG efforts have an impact on a corporation's brand and reputation, only 48% believe it affects a company's financial outcomes, according to the survey, which was previewed with Reuters ahead of its publication on Wednesday.

Roughly 28% of the respondents said they had no confidence at all that their organizations had "mature, well-documented" ESG capabilities. Another 30% said they had minimal confidence in their companies' ESG programs. Only 9% were highly confident.

Many non-binding ESG frameworks have been published by corporate associations and intergovernmental bodies, yet regulators at major economies such as the United States and the European Union have yet to implement comprehensive and harmonized standards for making ESG commitments and disclosures.

"A lot of sustainability programs are being published on the back of a spreadsheet and a prayer," said Matt DiGuiseppe, vice president of research and ESG at the Diligent Corporation, a corporate governance software company that assisted in the survey.

More than half of respondents said that they considered ESG metrics for some investments that their company made.

Some 32% of respondents said they were planning to base compensation for executives on ESG factors, while 20% said they already do.

© Reuters. FILE PHOTO: Aerial view shows a golf course next to desert landscape as the state faces its worst drought since 1977, in Palm Desert, California, U.S., June 29, 2021. REUTERS/Aude Guerrucci

The survey respondents were largely based in the United States and Europe. Roughly two-thirds of them had a role in managing and reporting on ESG or ESG policies.

(This story corrects to delete repeated words)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.