Though the push for sustainability and social responsibility continues to gain momentum, the majority of companies had no ESG plan in Q4 2022, according to a poll conducted by a global data and analytics company. 

GlobalData’s ESG Sentiment Polls Q4 2022 reveals that only 32% of respondents said their company had an ESG strategy. This means that the majority (68%) of respondents either had no ESG plan in place (34%) or were unsure whether they had one (34%).

Last year, companies faced major challenges in meeting their ESG goals, raising concerns about the long-term sustainability of their operations, GlobalData said.

“The reluctance of many CEOs to fully engage with ESG can be attributed to the age-old view that it will hurt profits. However, our research suggests the opposite. Companies that embrace all three elements of ESG will outperform their peers," Cyrus Mewawalla, Head of Thematic Intelligence at GlobalData, said.  

In total, 1,330 respondents participated in the survey.

"CEOs that are too slow to improve their company’s approach to sustainability will see an exodus of customers and a drop in profits far sooner than they ever imagined,” he added.

Financial institutions, businesses and governments have increased their efforts to align with the UN’s sustainable development goals (SDGs). This trend will continue in 2023, GlobalData said in its report titled ‘Global Environmental Trends by Sector, 2022 – Thematic Intelligence’.

Going forward, the significance of ESG performance is only set to grow as the world continues to grapple with environmental challenges.

"Companies that embrace this trend and take meaningful action to improve their ESG performance are likely to be the ones that thrive in the years to come," Mewawalla said.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Daniel Luiz)