Companies on notice for environmental accountability
A MAJOR global study has found more than half of Australians surveyed said they would avoid using a product or service based on the company’s stance on environmental, social and governance issues.
Climate was also top of mind, with nearly 30 per cent of Aussies concerned about it, compared to the overall global average of 24 per cent. More than 10,000 people in countries including Australia, China, Colombia, France, Germany, Italy, Japan, Singapore, the UK and the US were surveyed by insights and research company SEC Newgate for their inaugural Environmental, Social, and Governance (ESG) Monitor.
“Interest in ESG is broadly held and Australians are showing they will act on their beliefs,” SEC Newgate managing partner Brian Tyson said.
“Over one in five Australians have discussed a company’s behaviour in social media or online.
“While a majority of Australians indicated they would be willing to pay more if the company was doing the right thing in terms of ESG, only a small proportion were willing to pay much more, particularly in comparison to other markets around the world,” Mr Tyson said
Meanwhile, 80 per cent of Australians said they wanted companies to take responsibility for their supply chains, while 74 per cent said companies should promote their ESG efforts “more clearly”.
“It is clear the community would like to see greater transparency, and those governments and corporates that communicate clearly around their ESG response will be rewarded, while poor performers will be punished,” Mr Tyson said. “It’s no longer just a case of earning a social license to operate, Australians also want accountability and enforcement, or they’ll take their business or their vote elsewhere.
The Monitor will become an annual benchmarking index to measure global sentiment, which will allow changing attitudes and priorities to be tracked year-on-year.
“The study carries some interesting messages about what governments and companies should focus on if they want to build their public reputation on ESG,” managing director SEC Newgate research Sue Vercoe said. “For the government, it’s all about policy leadership on the environment and living up to public expectations that they will be honest and accountable.”