ESG Strategy Survey 2021: Thematic Research

GlobalData's ESG Strategy Survey 2021 was designed around the framework to help executives identify all potential sustainability risks and implement mitigating actions that can improve their company’s ESG performance.

Primary Objective of the ESG Strategy Survey 2021

Environmental, social, and governance are the three key factors to consider when measuring a company’s sustainability. The primary goal of this survey is to shed light on the extent to which companies are setting up and implementing ESG plans. As part of the survey, 1 500 ESG leaders and executives worldwide answered the survey questions.

The respondents to this survey have both an insider view of their company’s ESG plans and practices, as well as an informed opinion about the impact of ESG on the overall performance of a company.

Key findings discussed in the report:

• ESG takes a backseat as COVID-19 remains front of mind: ESG will be the critical theme impacting companies this decade, but COVID-19 is still dominating their attention in the short term

• There is broad consensus about the importance of ESG: There is little doubt that companies recognize the importance of ESG. Respondents to our survey said that ESG should be central to decision making, including investment decisions

• Big polluters are more attuned to the importance of ESG: The consensus around the importance of ESG crosses industries, but it is particularly prominent in specific fields. Sectors like packaging, mining, oil & gas, automotive, and power tend to rank higher than others in the metrics that measure ESG importance, goal setting, and investment

• Businesses neglect good governance, but ESG goals are unlikely to be met without it: Most of the focus and investment is going towards environmental issues. Most respondents thought that, of the three ESG factors, the environment was the most important for their sector

• The benefits of environmental action are perceived as external to business operations: For most companies, the positive impact of environmental efforts is felt externally rather than in areas intrinsic to business operations

• Companies have social policies in place, but not all are conducting assessments: Most companies are prioritizing the health and safety aspect of social sustainability. This is highly regulated, and the consequences of health and safety failures can be fatal for workers and communities in which companies operate

• Governance is the ESG factor with the most room for improvement: Of all aspects of ESG, it is governance factors that are most in need of improvement. Most respondents to our survey claimed that their companies conducted risk assessments, and that executive pay was linked to governance targets

Survey Methodology:

• Fieldwork for the ESG Strategy Survey 2021 was conducted online in October 2021

• The sample was composed of 1 500 ESG leaders and executives

• See Survey Design, Demographics, and Methodology for more details