Lack of regulatory guidance hindering corporate ESG efforts

23rd February 2022


Companies across the UK, US and EU are being deterred from investing in environmental, social and governance (ESG) initiatives due to a lack of regulatory guidance, a new survey has found.

The poll of more than 600 companies by risk management firm Alcumus found that 49% are put off from investing more in ESG, with a lack of technical understanding and guidance from regulators cited by 77% and 73% of respondents, respectively.

Difficulty accessing data across organisations and supply chains, and a lack of necessary tools and technology, are also hindering ESG reporting, mentioned by 43%, 38% and 29%, respectively.

David Picton, senior vice president of sustainability at Alcumus, said that organisations are realising that, without meaningful ESG standards, they will struggle to attract customers, investors or employees in the future.

“ESG adoption is clearly now an irreversible global trend, but data will make all the difference to the credibility and authenticity of ESG reporting,” he continued. “Companies recognise this, and as an industry we must work with them to make it happen.”

Despite the various ESG challenges, the survey also found that 90% of companies now adopt ESG considerations in their corporate strategy, while 67% invest in systems and technology to obtain data and make progress measurable.

The trend is more pronounced among larger companies with 250 staff or more. Among these, 94% adopt ESG, and 71% have invested in systems and technology to capture data.

Moreover, the findings show that ESG is having a “large” or “very large” impact on 65% of the companies surveyed, rising to 73% among larger firms.

“These are still tough times, but companies are not just in survival mode, there is a clear focus on 'building back better' post-pandemic,” Picton said. “Many are using the situation as a catalyst to revisit the viability of their business models and make changes to thrive in the future.

“Addressing ESG plays a key part in this, but to demonstrate long-term impact and change, it is critical to have data and evidence.”

Image credit: iStock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Facing the climate emergency challenge in local government

It’s well recognised that the public sector has the opportunity to work towards a national net-zero landscape that goes well beyond improving on its own performance; it can also influence through procurement and can direct through policy.

19th March 2024

Read more

Dr Julie Riggs issues a call to arms to tackle a modern-day human tragedy

15th March 2024

Read more

Disgraced environmental consultant Peter Lovebrother is another month nearer retirement…

13th March 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

The UK’s new biodiversity net gain (BNG) requirements could create 15,000 hectares of woodlands, heath, grasslands, and wetlands and absorb 650,000 tonnes of carbon each year.

13th March 2024

Read more

The UK government’s latest Public Attitudes Tracker has found broad support for efforts to tackle climate change, although there are significant concerns that bills will rise.

13th March 2024

Read more

Multinational corporations are undermining their net-zero commitments with excessive air travel and no plans to reduce ‘the low hanging fruit’ of carbon footprints, a study by Transport & Environment has found.

13th March 2024

Read more

The UK government’s climate adaptation plans are ‘inadequate’ and falling ‘far short’ of what is required, the Climate Change Committee (CCC) has warned today.

13th March 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close