Keeping pace with investor expectations on ESG

Several surveys from PwC over the last 6 months, highlight that investor demands for environmental, social, and governance (ESG) performance is growing much faster than previously anticipated and according to PwC’s 2022 Global Investor Survey, ESG topics such as reducing greenhouse gas emissions, ensuring responsible supply chain practices, including avoiding modern slavery, diversity and inclusion, topics many of our clients have been working on for many years, are important areas for investors when considering which businesses to lend their support and resources to. However, investors face challenges when verifying performance. This survey in particular highlights reporting and reporting trust issues with 87% of respondents feeling that corporate reporting contains unsupported claims (also known as “greenwashing”) about a company’s sustainability performance, yet the survey also highlights a gap in delivering outcomes that matter to investors. PwC recommends the following three actions for executives to help meet investor demands (actions more detailed in the link below in the section "Takeaways"):

• Integrate sustainability factors with core business strategy and decision-making
• Measure the value of today’s climate risks
• Track and report sustainability performance with the same rigour and data quality as financial performance

All in all, the survey is an interesting and educational read for those navigating the growing pressures to push ESG goals to the forefront of the agenda and report on it effectively.

(Get in touch to see how Intertek can help you and your company's sustainability/ESG performance tracking and reporting - you find my email address in my profile)