Data-Makers, a research and big data institute, launches the “Data-Leaders ESG” study, carried out in partnership with CDN, one of the main PR agencies in Brazil. The analysis, which included 170 business leaders, including CEOs and C-Levels from the most different segments, aims to understand how these leaders relate to one of the most important topics of today, assessing the degree of relevance of the subject, the level of knowledge of executives, the performance in companies, in addition to projections for the future.
Among the main notes, the study shows the gap that exists between the relevance that leaders attribute to the topic and the knowledge they admit to having on the subject. In numbers, 92% of them determined ESG as extremely important or very important for the future of the companies. However, dominating the agenda is a challenge. Only 16% of them claim to know the issue in depth.
Even with the growing exposure of the topic, respondents also believe that ESG deserves more attention from the business community. The most interesting fact is that this perception increases as executives’ knowledge of the subject also increases. On the opposite side, executives who declared they had no knowledge of ESG were the ones who most said that the agenda receives more attention from companies than it deserves.
The performance and image of companies
The study also reveals that executives recognize that there is still a long way to go in the evolution of the topic in their companies. For no other reason, the majority (42%) consider that performance in ESG practices is only fair in the organizations they lead. Compared to the market, 46% of leaders rate their companies as average, 27% as superior and 27% as inferior.
Another point that draws a lot of attention in the study by Data-Makers in partnership with CDN is the main objective of ESG activities. The leaders interviewed made it clear that image is the main motivation for adopting ESG practices (85%). This factor is ahead of corporate reputation (65%), improvement in company management (59%), risk reduction (stakeholder pressure) (38%) and talent retention (35%).
“After understanding the relevance of the ESG topic in the press, with our ESG in the Media study, the partnership with Data-Makers broadens our view on a topic that is a priority agenda for brands and part of building reputation. This data-driven perspective guides us and guarantees assertiveness and efficiency in the strategic actions we design for our clients”, says Fernanda Dantas, head of digital and data intelligence at CDN.
Challenges and decision making
Among the most relevant barriers to the adoption of ESG in organizations, according to executives, are lack of knowledge (49%), pressure for short-term results (48%), lack of prepared professionals (46%), lack of priority for the topic (45%) and leadership commitment (41%). Culture of cases and measurement are also challenges. Business leaders cited a lack of data (38%), clear KPIs (37%) and benchmarks (32%) as limiting factors in adopting ESG practices.
This lack of prepared professionals affects another point of the study. CEOs (49%) and boards of directors (21%) are the top ESG decision makers, followed by cross-disciplinary committees (11%) and HR (6%).
Investments and hands-on
In theory, business leaders point to a growing importance of the theme in business, but, in practice, investments will not reflect this scenario, at least in the next 12 months. ESG funding will only increase at three out of ten companies. In almost two thirds, there will be no change in investments. The good news is that only 6% of companies will decrease the amount invested.
But, if the investment scenario is not favorable, at least the executives intend to take action. The study shows that 56% of leaders were committed to actively participating in ESG actions, either acting directly (35%) or leading these initiatives (21%). Another 35% intend to support such actions, and only 9% have no interest in participating.
“The vast majority of executives intend to be directly involved with ESG actions in their organizations, either by leading, actively participating or supporting such actions. The scenario shows a willingness to compensate for the lack of knowledge with hands-on learning”, evaluates Fabrício Fudissaku, CEO of Data-Makers.
Brands and professionals remembered
Executives found it difficult to name a company that stands out in ESG, which is a reflection of the stage of the topic in Brazil. In this scenario, 22% of the leaders were unable to indicate a brand that generates awareness in relation to the theme. Among those who remembered, Natura was the leading organization in mentions (25%). Ambipar, Dengo and Unilever had 3% of mentions. In total, 42 companies were mentioned, and the dispersion of responses is another indicator of the incipient stage of ESG in Brazil. The most remembered executive was Estevam Sartorelli, CEO of Dengo, with 3% of mentions.
The first in a series
This is the first in a series of studies that will address some of the most urgent and relevant topics in the market. For this, the initiative also has strategic partners such as the recruitment company PageExecutive, the vehicle Mundo do Marketing, in addition to the support of the data portal Data-Crush.
“The key point of the Data-Leaders series is to bring together partners who have a solid relationship with executives. Because it is one thing to have access to this public and another is to engage them to dedicate time participating in the research. These partners are a reference in their areas and do not compete with each other. Thus, we made the project viable, which aims to support the decision-making of the Brazilian business community”, points out Fabrício.
The full report will be made available here.
Methodology
The study heard 170 business leaders, including CEOs and C-Levels from the most different segments and sizes and is based on a self-completed quantitative online survey. The selection of participants is carried out by the partner companies of the initiative and data analysis is carried out by Data-Makers through statistical techniques, such as descriptive, correlational and inferential analysis, to identify patterns, trends and associations.
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