top of page

Why Your Business Can't Afford to Ignore ESG: Insights from KPMG's 2024 Survey



The Evolution of ESG


In today’s rapidly evolving business landscape, corporate responsibility is more important than ever. At Ethical Good we are committed to helping companies become more socially responsible whilst still making a profit.


The recent KPMG survey of 2024 reveals a promising trend: sustainability and ESG (Environmental, Social, and Governance) considerations are becoming central to business strategy. This survey provides crucial insights for organisations like Ethical Good, which are dedicated to helping businesses improve their ESG practices without sacrificing profitability. We have analysed some of the key findings from the survey to help businesses understand this growing trend and incorporate them into their strategy.



Sustainability as a Strategic Focus


One of the most striking revelations from the KPMG survey is that sustainability goals are now prominent on boardroom agendas. This shift shows that sustainability is no longer a peripheral concern but a core component of business strategy. This is positive news as amongst competing priorities it is widely recognised that ESG can be driver of long-term value creation.


The increased focus on sustainability is driven by several factors. Firstly, there is growing awareness of the environmental and social impacts of business activities. Secondly, there is increasing regulatory pressure, with governments and international bodies introducing stricter ESG reporting requirements and sustainability standards. Finally, consumer decisions are increasingly driven by positive impact, which means brands prioritising sustainability are especially preferred by younger generations.



Balancing Ambition with Regulation


At Ethical Good, we advocate for a balanced approach where businesses not only comply with regulations but also set ambitious sustainability goals that go beyond compliance. By doing so, companies can position themselves as leaders in their industries, demonstrating that profitability and sustainability can go hand in hand.  


Regulatory requirements for ESG reporting are constantly evolving, with new frameworks and standards being introduced regularly. These regulations aim to enhance transparency and accountability, encouraging companies take concrete actions to address ESG issues. Navigating the complex landscape of evolving regulations is a significant challenge for companies. The KPMG survey highlights the need for effective governance structures to manage this complexity, particularly for businesses that operate in multiple jurisdictions with different requirements. 


To address these challenges, companies need robust governance structures that can oversee ESG initiatives and to ensure that ESG performance is regularly monitored and reported. Ethical Good offers services to manage the impact of any policy changes, helping businesses adapt to and thrive under new regulatory landscapes.


Evolving Roles and Structures


The survey indicates that company structures are adapting to accommodate a stronger focus on ESG. This includes board-level oversight and the integration of sustainability considerations throughout the organisation. Such structural changes are essential for embedding ESG into the fabric of a company’s operations, ensuring that sustainability is a shared responsibility. By establishing dedicated ESG committees or assigning ESG responsibilities to existing committees, boards can provide the necessary leadership and oversight to drive sustainability efforts. This also involves setting clear ESG objectives, monitoring progress, and holding management accountable for achieving these goals.


Focus on Resources and Talent


Effective ESG management requires a combination of technical expertise, strategic thinking, and leadership skills. Companies need to invest in building the necessary capabilities to manage ESG initiatives effectively. This includes hiring ESG specialists, providing training and development opportunities for existing employees, and creating a culture that supports sustainability.



Conclusion


The insights from this survey help us to identify key areas of focus with ESG policy change that you can start thinking about for your business. We hope this helps you understand the growing importance of ESG in today’s business world. The insights from KPMG's 2024 survey highlight the critical role sustainability now plays in corporate strategy. At Ethical Good, we are dedicated to supporting businesses in integrating ESG practices that drive both profitability and positive impact. By prioritising sustainability, companies can not only comply with regulatory requirements but also position themselves as leaders in their industries. Remember, embracing ESG is not just about compliance—it's about creating long-term value for your business and society. 

 


If you are interested in discussing ESG related policy for your business the team would be happy to help! Get in touch today info@ethical-good.com



Comments


bottom of page