This week we continue our analysis of the rising influence of ESG by focusing on the aspects of a brand’s ESG efforts; their environmental, social, and governance initiatives and investments.
Overall, we’ve found that ESG initiatives are being taken seriously, with companies pouring considerable efforts into their ESG programs.
E: 46% of companies report making significant contributions towards Environmental efforts, which include initiatives to show that they care about the environment and measure their company’s environmental impact.
S: 52% of companies reported expanding significant efforts and spending around Social issues and causes. G: Greater efforts are being made towards Governance, where 57% of companies report improving their hiring practices and promoting equity and meritocracy in their workplace. In addition to their efforts and investments, organizations are also learning about the value of ESG through continuous feedback from their customers, employees, and investors.
23% of organizations report collecting feedback from all three – customers, employees and investors – to visualize the perceived impact of their ESG efforts. Consumer feedback seems to be the most important, with 45% of companies reporting collecting feedback from their customers.
Is this a common trend across all industries, or are specific industries leading this ESG wave?
ESG efforts by Tech companies
Overall, Tech companies have put in the least amount of effort into ESG compared to companies in other industries. Over a third of companies report increasing their efforts towards environmental causes. In addition, 43% and 45% of companies report investing more towards social and governance causes as well.
ESG efforts by Healthcare and Pharma companies
Healthcare companies invest more in ESG than any other industry. 60% of companies report that they have increased their efforts towards environmental and social causes, while a staggering 73% of companies are investing significant effort towards governance, 1.28x the average effort.
ESG efforts by FSI & Investment companies
FSI and Investment companies are investing lower than the average efforts around ESG. 41% of companies report putting in high efforts for Environmental causes, while 46% report the same for social causes. Moreover, half of the companies surveyed report that they are increasing their efforts towards governance.
ESG efforts by Retail and Consumer companies
Retail and Consumer companies are investing considerable efforts around ESG. While Retail and Consumer companies are on par with the average investment of effort for Environmental and Governance causes, 58% of the companies surveyed also report enacting significant initiatives towards social causes.
Stay tuned as we dip deeper and bring new perspective on ESG and its importance!
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