Communications and advocacy group SEC Newgate has released its Global ESG Monitor report, assessing emerging consumer sentiment toward the ESG performance and corporate environmental responsibility policies of businesses and governments globally. This year, SEC Newgate’s global survey gathered insights from 14,352 people across 14 countries and territories.
Globally, it was found that there is a “clear gap” between the standards communities expect governments and businesses to uphold on ESG matters and their performance in meeting those expectations.
Key findings include:
- There are strong expectations for governments and large businesses to act responsibly in terms of ESG considerations and somewhat lower expectations for small to medium businesses. However, all were rated “relatively poorly” for their performance on this front.
- The top five rated industries for conducting their business responsibly were renewable energy, supermarkets/grocery stores, technology and telecommunications, education and training, and hospitality.
- In contrast, the worst rated were alcohol, mining and resources, nuclear energy, gaming, and the chemical industry.
- The survey showed that 78 per cent think companies should act in the best interests of all stakeholders rather than prioritising shareholders.
- Slightly over half said they were aware of the term ESG. However, only 21 per cent thought they had a good understanding of it.
- Close to three in four people also want companies to communicate more clearly about what they are doing to improve their performance on ESG issues.
- However, almost half indicate that they don’t trust what companies say about their ESG actions.
Looking through a more regional lens, the survey showed that in the UAE, businesses are failing to meet public expectations for ESG behaviour.
The survey, which polled 1,017 people, found that UAE residents have very high expectations for businesses to act responsibly on ESG issues.
A total of eighty-three per cent agree that companies can be profitable while also performing well on their ESG responsibilities and almost 70 per cent believe that companies should act in the best interests of all stakeholders rather than prioritising shareholders ahead of other stakeholders.
Further, eighty-four per cent agreed that companies should more clearly communicate what they are doing to improve their performance on ESG issues.
For the full report and regional insights, head here.