Environmental, Social and Governance (ESG) is neglected by 42% of businesses.
That’s according to research by technology company EcoOnline, who surveyed the thoughts of employees from 124 different companies.
ESG is a means of measuring how much a business invests sustainably and responsibly – but it’s not only unreported by 42% of businesses, it’s viewed as a mere ‘box-ticking exercise’ by 50%.
The report reveals a high level of employee disengagement with the subject, as companies stick ESG on the backburner.
Demand for a clear and transparent approach to ESG is becoming more necessary for companies to do business with one another, the report states, stressing that if these businesses continue to pull their feet, investment will go elsewhere.
ESG is now used commonly to measure a company’s performance and its effectiveness in strategy and targets.
Although ignorance for the subject is still prominent, 67% of the respondents did state they feel that pressure has grown in the last three years to report ESG data – but whether this was due to regulatory obligations or a desire to become more sustainable is unknown.
External factors have been key to driving ESG reporting, with investors and stakeholders provided as the reason by 30% of participants and customers responsible for 31.5%.
Helene Melby Brodersen, Head of ESG Strategy at EcoOnline, said: “ESG reporting is a vital communication tool that plays an important role in convincing sceptical customers, as well as stakeholders and investors, that an organisation is taking meaningful and proactive action on issues which affect us all.
“Ultimately, ESG reporting is not just a box-ticking exercise but is intended to inspire an organisation-wide commitment to generating sustainable long-term goals.”