Despite the growing emphasis on sustainability and social responsibility, faith in the effectiveness of environmental, social, and governance (ESG) strategies is waning. This sentiment raises concerns about the long-term sustainability of business operations and highlights the need for companies to recommit to their ESG goals, says GlobalData, a leading data and analytics company.

GlobalData’s ESG Sentiment Polls Q4 2022 found that only one-fifth of poll respondents believed businesses are fully committed to ESG. The percentage of respondents who said ESG is a marketing exercise rose by eight percentage points from the previous quarter.

Cyrus Mewawalla, Head of Thematic Intelligence at GlobalData, comments: “The reluctance of many CEOs to fully engage with ESG can be attributed to the age-old view that it will hurt profits. However, our research suggests the opposite. Companies that embrace all three elements of ESG will outperform their peers. CEOs that are too slow to improve their company’s approach to sustainability will see an exodus of customers and a drop in profits far sooner than they ever imagined.”

GlobalData’s latest report, “Global Corporate Governance Trends by Sector, 2022 – Thematic Intelligence,” reveals that cybersecurity was the most disruptive threat for businesses in 2022.

The ESG framework developed by GlobalData serves as a valuable management tool to evaluate a company’s ESG performance. It can help identify factors that lead to negative ESG outcomes and provide insights into actions that can be taken to enhance the company’s ESG performance.

Mewawalla concludes: “The decline in faith in the effectiveness of ESG strategies is a cause for concern. With cybersecurity emerging as a significant threat in 2022, businesses must recognize the importance of ESG and take action to mitigate risks, build resilience, and restore trust. Failure to do so may result in long-term reputational and financial damage.”