GECN ESG Report 2023 : Sharp increase in environmental metrics reported across the globe
November 22, 2022
MM&K (the UK partner firm in the GECN group) is soon to publish its 2022/23 research on how the world’s largest firms use ESG (environmental, social, governance) metrics in their executive incentive plans. Pre-order your free copy here.
Environmental metrics appear to have truly flourished across the world this year. All regions reported an increase, Europe seeing the sharpest rise with a 32% increase, and the UK second with a 26% increase.
Likewise, environmental metrics have seen growth across all industry sectors (bar energy for which the environment was already the most popular), the sharpest growth seen in industrial firms with a 30% increase.
A rise in concern about environmental metrics over time should likely not come as a surprise, especially for global warming which, as we all felt this past summer, is no big secret. This year, greenhouse gas emissions were by far the most popular metric among environmental measures. In the FTSE100, 113 environmental metrics appeared, 45% of which were on greenhouse gases:
This drive towards environmental responsibility is shared, increasingly so, by consumers. According to Deloitte’s 2021 global survey of 10,000 consumers, 64% listed recycling among their top three concerns, as did another 64% about single use plastics.
Businesses are likely to respond to pressure from consumers, who may vote with their wallets against the environmentally complacent. Deloitte’s study found that 23% say they will switch to products from firms who share their values on environmental issues. 42% have changed their habits already, and 21% have encouraged others to do so.
MM&K, together with our GECN partners, publishes research annually on how ESG shapes CEO incentive pay in the world’s top companies. This is the comprehensive guide to ESG in firms of the FTSE100, S&P100, DAX30, etc.