Industry views

38% of companies lack an ESG strategy – GlobalData survey 

A new survey has found that over half of B2B respondents believe that “for most companies, ESG is just a marketing exercise”. Eve Thomas reports.

Well over a third (38%) of companies do not have an ESG strategy, and half (50%) of respondents believe that “for most companies, ESG is just a marketing exercise”, according to a new survey. 

The ESG Sentiment Polls Q1 2024survey asked 360 respondents about the presence of ESG strategies in companies, as well as the reasons behind them and other disruptive factors impacting businesses. 

It found that legislation and pressure from governments are perceived by 38% of respondents to be the primary factor behind ESG strategies, while 32% feel that the desire to improve financial performance is the key reason. 

This is in stark contrast to pressure from workers, which only 4% of survey respondents consider to be the main reason behind ESG strategies. Customers are perceived to be more influential, with 14% of respondents believing to be the primary factor.   

The results are buttressed by the sentiment that ESG strategies are primarily “just a marketing exercise” – a view shared by over half of the survey respondents. Nearly a third (32%) feel that the picture was more mixed, expressing a view that some companies’ ESG strategies are meaningful, while others are a marketing strategy. Only 8% feel that most businesses are committed to ESG. 

Concerns about the authenticity of ESG have prompted increased scrutiny. GlobalData’s recent ESG 2.0 report noted that: “Companies now have to be careful about their communications and strategy on ESG. Regulators are increasingly keen to scrutinize them, politicians might single them out, and stakeholders are demanding action to meet ESG commitments.” 

It considers this new era of regulatory action to be the second phase of ESG, which it defines as a transition away from voluntary strategies and towards mandatory ones. 

Despite this, only 9% of survey respondents consider ESG to be the theme most likely to impact their businesses over the next 12 months. This made it the least popular theme of the options provided, with high inflation and geopolitical conflict expected to be the two most impactful. 

Underestimating the importance of ESG strategies will prove detrimental to businesses in the long term. The report warns that: “ESG 2.0 will be less forgiving of poor ESG performers, especially on environmental issues,” adding that: “Companies that fall behind on decarbonization will pay higher costs and lose sales” and “will be held accountable for ESG performance across their value chain, not just their own operations.” 

Go to article: Home | Ireland – the jewel in the life sciences crown?Go to article: Editor's letterGo to article: ContentsGo to article: Formacoat Company InsightGo to article: FormacoatGo to article: BriefingGo to article: News in NumbersGo to article: Latest NewsGo to article: Latest DealsGo to article: Project UpdatesGo to article: Trends & InsightGo to article: Micro Crystal advertGo to article: In DepthGo to article: Ireland – the jewel in the life sciences crown? Go to article: Explainer: US Election 2024 -Biden’s healthcare outlook Go to article: Caresyntax gears up to grow digital surgery platform Go to article: FDA’s Final Rule on IVDs: a stop gap en route to the VALID Act? Go to article: NGS: the road to personalising cancer care Go to article: AI-powered precision medicine: transforming patient safety in healthcare Go to article: The MedTech Forum 2024: Stakeholders told to act now or lose out on elections Go to article: Thematic TakeGo to article: Thematic Take: contentsGo to article: Foreword: A growing sense of urgency in ESG Go to article: ESG 1.0 is over – get ready for ESG 2.0 Go to article: ESG becomes mandatory: how to prepareGo to article: Theme timeline: the past, present and future of ESG Go to article: Case study: Medtronic MiniMed extended infusion set a step forward for sustainability Go to article: GlobalData’s Christopher Papadopoullos on net-zero strategy for businesses Go to article: Latest news: ESG in healthcareGo to article: 38% of companies lack an ESG strategy – GlobalData survey Go to article: Bring your own device: How patients own tech is being used in clinical trialsGo to article: Another recall: does Philips have a quality control problem? Go to article: FemTech: the world’s largest ‘niche’ market Go to article: Are therapists safe from AI disruption? Go to article: Japanese patients among least empowered in the developed worldGo to article: Why has New Zealand U-turned on the world’s first smoking ban?Go to article: Why sustainability reporting standards must be simple, consistent and transparentGo to article: Deal activity related to ESG in the medical device industry since 2021  Go to article: Alleima Company InsightGo to article: AlleimaGo to article: Sponsored supplementsGo to article: ListingsGo to article: EventsGo to article: Innovation RankingsGo to article: Buyer's GuidesGo to article: Next issue