Too Legit: ESG Won’t Quit –U.S. ESG Trends for 2023
Spoiler alert: The focus on Environmental, Social and Governance (or “ESG”) topics in the corporate world is here to stay. The catch? We may not call it ESG ten years from now, but that won’t matter.
Our view has long been that ESG will become ubiquitous, and that we will likely stop calling it ESG one day because its tenets – and the disclosure of non-financial ESG data – will simply become the way in which we do business.
There is an important distinction between ESG for funds vs. ESG for corporates. The media conflates the two all the time, which has exacerbated the confusion on ESG. This article is about sustainability practices and programs at public companies, not the labeling or marketing of ESG funds.
ESG’s ultimate ubiquity is just one of our expectations for the future. This article covers 15 ESG trends that we believe are ahead.
Despite recessionary pressures, the ESG pushback from politicians and the underperformance of some ESG-focused funds, the results of Teneo’s recent survey of global CEOs and institutional investors found that CEOs and investors are unwavering in their commitment to balance company performance and ESG commitments in 2023.
In fact, more than 60% of CEOs and investors indicated a commitment to balance both priorities, while 15% of CEOs said that they are prioritizing investment in ESG over business performance (Figure 1).2 This percentage is even higher in Asia and Europe, where CEOs are more likely to balance ESG and business needs, while CEOs in the Americas lean toward refocusing on operations. As media coverage shows, some Americans believe ESG is a challenge to capitalism (which it is not).
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Πηγή: teneo.com
