Research carried out through a partnership between the Data-Makers institute and the CDN heard 170 leaders
Data-Leaders ESG survey, carried out through a partnership between the Data-Makers institute and CDN, interviewed 170 leaders, including CEOs and C-levels, to find out how these executives relate to the ESG theme.
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, mastering 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 the executives’ knowledge about the subject also increases.
On the opposite side, the executives who stated that they had no knowledge of ESG were the ones who most said that the agenda receives more attention from companies than it deserves.
Company image
The study also reveals that executives recognize that there is still a long way to go in the evolution of the theme 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%).
Among the most relevant obstacles 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 the theme (45%) and leadership commitment (41%). Case culture 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
In theory, business leaders point to a growing importance of the topic in business, but, in practice, investments will not reflect this scenario, at least in the next 12 months. ESG funding will only increase in three out of every 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% are not interested in participating.
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 issue 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 cited, 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.
(Credit: Freepik)
