The latest ESG survey conducted by Morrison Foerster, in collaboration with Corporate Counsel, unveils significant shifts in corporate ESG priorities, with governance emerging as a central theme.
According to ESG News, the survey results indicate a growing emphasis on governance, with 61% of respondents identifying it as their principal ESG concern, up from 53% the previous year.
Susan Mac Cormac, global co-chair of Morrison Foerster’s ESG + Sustainability and Social Enterprise + Impact Investing practices, emphasised the importance of governance in navigating the future of ESG.
Another notable change is the diversification in the leadership of ESG initiatives. Traditionally dominated by general counsels, the responsibility for leading ESG strategies is now increasingly shared with other senior executives. This year, only 40% of general counsels reported leading their company’s ESG strategies, a significant drop from 77% in 2022. C-suite leaders and Chief Compliance Officers are taking more active roles, indicating a shift towards more integrated and strategic ESG management.
The survey also highlights the role of ESG in shaping business strategies. More than half of the companies surveyed (52%) reported that ESG considerations have influenced strategic decisions, marking a considerable increase from previous surveys. Additionally, adjustments to climate risk approaches and consumer preferences towards inclusive, climate-friendly policies were noted among 39% and 33% of companies, respectively.
However, confidence in the effectiveness of ESG programs appears to be waning. Only 44% of participants expressed confidence in their ESG efforts, down from 69% in the previous year. This decline is even more pronounced among private companies, where confidence plummeted from 73% to 34%.
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