September 25, 2022

What is ESG and why does it matter in 2022?

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  • Nielsen research show that 66% of consumers would spend more for a product if it came from a sustainable brand
  • Willis Towers Watson found that 92% of consumers are more likely to trust a company that supports social or environmental issues, and 88% of consumers are likely to be more loyal to such companies.
  • Mercer found that ESG can help attract talent, particularly younger generations (key as “By 2029, the Millennial and Gen Z generations will make up 72 percent of the world’s workforce”)
  • The Governance & Accountability Institute shared that 90% of the S&P 500 index now publish sustainability reports
Investors & markets
  • Sustainable bond issuance is expected to hit $1 trillion in 2021, with global dedicated ESG equity funds over $2 trillion by year-end
  • Over 80% of investors attach real importance to ESG considerations, with 85%+ more likely to hold an investment based on strong ESG performance
Corporate adoption
  • More than 90% of the S&P report on ESG, and 75% of the world’s largest companies have ESG initiatives with an increasing view to supply chain participation.
  • Though ESG adoption and understanding is growing, just 13% of boardshave robust oversight of ESG issues
Growing regulation
  • SEC created a Climate and ESG Task Force in 2021. 
  • NASDAQ issuing new guidelines and rules around diversity.
  • Major changes and restructuring of sustainability and ESG related regulators and standards in 2021.
  • Increased commitments and changes from UN and international pacts.
  Increased demand
    92% of consumers are more likely to trust a company that supports social or environmental issues, and 88% of consumers are likely to be more loyal to such companies.
Ensuring that your organization has an approach to ESG & sustainability that is relevant to your mission, your customers and provides business value from growth, cost efficiencies, market differentiation and brand reputation is critical. Not sure where to start? Third party ESG partners such as Veritrove can provide best practices and business cases; schedule a free chat with us around your ESG and sustainability journey with us.

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