A new global IBM (NYSE: IBM) Institute for Business Value (IBV) study, "The ESG ultimatum: Profit or perish," of executives and consumers reveals that while an increased focus on environmental sustainability remains a top priority for consumers and business executives, inadequate data is a key challenge for both groups when it comes to achieving personal and corporate Environmental, Social and Governance (ESG) goals.
The study* reveals that surveyed executives point to inadequate data (41%) as the biggest obstacle to their ESG progress, followed by regulatory barriers (39%), inconsistent standards (37%) and inadequate skills (36%). Without the ability to access, analyze and understand ESG data, companies struggle to deliver greater transparency to the consumer – a key stakeholder – and meet consumer expectations.
Seventy-four percent of surveyed executives believe that stakeholders understand their organizations' ESG objectives and performance, yet only about 4 in 10 surveyed consumers feel they have enough data to make environmentally sustainable purchasing (41%) or employment (37%) decisions.
"Consumer commitment to environmental sustainability and social responsibility has intensified with consumers voting with their wallets," said Jonathan Wright, Global Managing Partner Sustainability Services and Global Business Transformation, IBM Consulting. "As a majority of consumers choose to buy from and work for ESG leaders, businesses must prioritize transparency and break down barriers to ESG data."
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