ESG is increasingly becoming a full part of the CEO agenda and more and more seen as an opportunity rather than a threat, according to a new report.
Management consultancy giant Arthur D. Little told Net Zero Investor today that while two-thirds of CEOs admit to pursue ESG targets and goals purely for compliance reasons, 80% see it now as a source of competitive advantage.
Nearly seven in 10 say consumer pull as a primary reason for pursuing greener, more sustainable strategies.
Strategic importance
ESG is also rising in strategic importance, with 41% of CEOs making it a higher priority than other initiatives. Only 1% rank it as a lower priority.
There is a clear difference between sectors: 60% of carbon-intensive manufacturing companies see it as a higher priority, compared to just 28% of healthcare companies.
Increasing the focus on sustainability and committing to targets such as those within the UN’s Sustainable Development Goals (SDGs) delivers wider benefits in both responding to customer needs and attracting today’s purpose-driven generations of employees.
