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SEC Newgate Global Team
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Milan, Italy, Wednesday 16th October 2024: Businesses and governments across the world are failing to meet public expectations for ESG-related behaviour, the fourth annual ESG Monitor report from SEC Newgate has found.
The survey of more than 14,300 people across 14 countries and territories reveals strong expectations from the public for governments to act responsibly on ESG issues, with nearly three in five (58%) giving this an importance rating of 9 or 10 out of 10.
A similar majority (54%) said the same for large businesses, while expectations are lower for small to medium businesses (37%).
However, people gave lacklustre performance ratings for all three groups when it comes to delivering strong ESG outcomes. Just over half rated governments and large businesses at 7 or more out of 10 (53% and 54%) with a slightly more positive view towards small to medium businesses (58%).
Almost two thirds of respondents (65%) also said that companies should play a more active role in society – but getting the balance right is critical.
There is also strong belief (73%) that performing well on ESG responsibilities doesn’t have to come at the expense of profitability, while people overwhelmingly (78%) believe companies should act in the best interests of all stakeholders rather than prioritising shareholders ahead of other stakeholders.
In addition, the research found that awareness of the term ‘ESG’ was stable in 2024, scoring 54% globally versus 53% in 2023. Respondents in Hong Kong SAR (43%), Singapore (41%) and UAE (39%) were more likely to say they had a good understanding of ESG, while Greece (11%), Colombia (11%), Poland (9%) and Spain (9%) had the lowest level of understanding.
A key demographic also emerged from the research: those aware of ESG were most likely to be male, aged under 50-years-old, university educated and closely followed the news.
With regards to communicating their concerns around ESG, a vast majority of people (73%) agreed that companies should more clearly communicate what they are doing to improve their performance on environmental, social and governance issues. And almost half (44%) of people polled said they didn’t trust what companies said about their ESG activities or performance.
Speaking on the findings, Fiorenzo Tagliabue, Group CEO of SEC Newgate, said: “Our global ESG Monitor has found that corporate communication shortcomings are clear to see, with a large majority believing companies need to more clearly communicate what they are doing to improve their performance on ESG issues and address stakeholder needs.
“Compliance with ESG reporting standards is just a starting point, it ensures business meets its regulatory requirements, but it does not signify excellence or an ambitious plan to drive impact through corporate operations.
“Clearly, a considered approach is needed to overcome scepticism, with many not trusting what companies claim about ESG and given that many believe companies focused on ESG initiatives are too politically focused.
“Business is under intense scrutiny on ESG issues, but failing to act ambitiously and failing to be transparent about your plans and achievements on ESG issues poses a significant reputational risk.”
The survey also polled people on their top concerns with a focus on their immediate needs.
The top five global concerns included:
- Ensuring quality, affordable healthcare for everyone
- Reducing crime and violence
- Addressing the rising cost of living
- Ensuring secure and affordable food supplies
- Strengthening the economy
In addition, people were asked about the future of their own countries. Opinions varied widely by country, with optimism again the highest in the UAE, Singapore and Hong Kong SAR. Despite some gains compared to 2023, on balance the majority believe their country is heading in the wrong direction.
Proportion of people that believe the direction of their country/territory is on the right track:
- Global average: 47% (49%: 2023)
- UAE: 97% (98%)
- Singapore: 86% (84%)
- Hong Kong SAR: 75% (77%)
- Poland: 50% (29%)
- Brazil: 47% (new)
- Australia: 46% (47%)
- Spain: 40% (45%)
- UK: 37% (26%)
- Colombia: 37% (40%)
- USA: 37% (37%)
- Italy: 35% (39%)
- Germany: 29% (35%)
- Greece: 26% (new)
- France: 16% (27%)
Further remarking on the research, Sue Vercoe, Managing Partner of SEC Newgate Australia; Managing Director of SEC Newgate Research, added: “Our annual ESG Monitor has shown that people have high expectations of organisations to behave responsibly on ESG matters, and yet the scorecard for governments and businesses remains underwhelming.
“Despite other pressing concerns of the public in their day to day lives, most still see environmental, social and governance issues as important to address – even if they don’t view these through a formal ‘ESG’ lens.
“This is both a communication and operational challenge for businesses and governments. There is still much more work to be done when it comes to ESG.”