Short term thinking undermining ESG goals - EY report

Published by

Stephen Emerson

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.”

Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset. Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users. He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.