1. Legislation and government pressure are seen as the main drivers of ESG strategies by 38.1% of businesses.
2. Over a third of companies do not have an ESG strategy, and half believe ESG is mainly a marketing exercise.
3. ESG strategies are viewed as a response to legal and regulatory pressure, with ESG 2.0 being a transition to mandatory strategies.
A survey found that 38% of businesses perceive legislation and government pressure as the primary driver of ESG strategies, while 38% do not have an ESG strategy and 50% believe it is mostly a marketing exercise. The survey, conducted in Q1 2024, involved 360 respondents and explored the factors influencing ESG strategies in companies.
Among the respondents, 32% feel that improving financial performance is the main reason for ESG strategies, while only 4% attribute it to pressure from workers. Customers were seen as more influential, with 14% of respondents considering them the primary factor. Many respondents (over half) view ESG strategies as merely a marketing exercise, while 32% believe some companies take it more seriously.
This perception of ESG as a marketing exercise has led to increased scrutiny by regulators, politicians, and stakeholders. GlobalData’s ESG 2.0 report highlights the importance of companies being cautious in their ESG communications and strategies, as they may face consequences for not meeting their commitments. Despite this, only 9% of respondents see ESG as the theme most likely to impact their businesses in the next 12 months, with high inflation and geopolitical conflict expected to have more significant effects. The report warns that companies neglecting ESG strategies may face challenges in the future, especially related to environmental issues and decarbonization.