Investors Demand Greater Clarity on ESG Data | The Disruption House
Climate Consciousness Grows Among UK Investors
Climate change emerges as a formidable adversary, with 38% of UK investors anticipating companies to face significant exposure in the next five years. Staying ahead of the storm, investors increasingly seek sustainable investment options due to escalating client demands and regulatory pressures. In an age of heightened vigilance, businesses must step up their game by enhancing their ESG measures and reporting.
However, 89% of investors remain skeptical about the authenticity of corporate disclosures, fearing the prevalence of greenwashing. To secure investor confidence, businesses must invest wisely in technology and talent to develop robust, eco-friendly strategies.
Elevating ESG through Brilliant Measures and Skilled Workforce
Businesses are under increasing pressure to demonstrate effective actions in response to growing ESG scrutiny. 55% of UK CEOs are investing in enhancing tech skills and abilities of their ESG team, while 43% are committing resources to upgrade the technological tools employed by the said team. This strategic move aligns with the priorities of UK investors, as a staggering 83% consider innovation as their foremost business prerogative.
In today’s business landscape, companies can demonstrate the fruitful aspects of ESG alongside its challenges, offering insightful viewpoints on matters that yield value and require mitigation.
Stay Ahead of the ESG Curve
A remarkable 75% of UK investors consider regulatory risk as a crucial factor while making sustainable investments, surpassed only by client demands. Lynne Baber, Sustainability Practice Leader at PwC UK, emphasizes the importance for companies to showcase their comprehensive understanding of and timely responses to sustainability regulations in order to meet investor expectations. Staying updated on regulatory shifts and proactive preparedness for enforcement can help mitigate potential risks and positively influence investment decisions, such as capital allocation.
The crux of the matter is that although regulatory advancements are underway, businesses must take proactive steps to instill investor confidence. Crafting a strategic approach that addresses pertinent concerns enables them to furnish reliable, high-quality data.
As future expansion hinges on a company’s ESG commitments, it becomes crucial to invest in the right mix of human and technological resources for driving tangible transformations.
At The Disruption House, we are so passionate about ESG and Business Resilience, and would love to guide you and your business on your ESG journey and how to make these commitments benefit your bottom line. Contact us here.
This article explores the UK findings following a global PwC online survey, conducted in September 2022, along with PWC’s reviews.
Referenced Sources below:
https://www.pwc.com/gx/en/issues/esg/global-investor-survey-2022.html
