Short term thinking undermining ESG goals - EY report
Short term thinking on company boards is proving to be the largest barrier to achieving ESG goals, according to a new EY report.
EY’s annual Long-Term Value and Corporate Governance Survey polled senior leaders across 25 industries, from fifteen European counties .
ESG was the focus of the 2022 report and while it proves there is an appetite for ESG strategies, it also discovered short-termism and a fragmented approach make them ineffective.
The full report was published this week.
Public policy expert Andrew Hobbs, the EY EMEIA Public Policy Leader, said: “The report finds an approach amongst boards is rendering ESG strategies less effective, despite a significant appetite for these strategic approaches.”
The new data shows the boards of companies could be a leading limiting factor in executing ESG corporate strategy. This is, stated Mr. Hobbs: “due to a focus on short term commercial aims, despite EMEA companies and executives finding value in an ESG-focused approach in the long term.”
Hobbs argued that the top advantage of incorporating ESG factors into corporate strategy, is in creating new sustainable products and services. This drives revenue growth and helps meet the needs of ESG-conscious consumers.”
Read more - ESG priorities for corporates and law firms - survey
