Meeting your investors' ESG expectations video transcript
The Leadership Agenda
Meeting your investors' ESG expectations
ESG goals are a major factor for investors and a key priority for their portfolio companies.
Attitudes towards ESG risks and opportunities, % of respondents who agree
[chart]
Around 80% of respondents to a PwC survey noted ESG as a vital factor in their decision-making
Just under 70% believed executive compensation targets should include ESG factors
Almost half were willing to divest from companies not proactive on ESG issues
But that doesn’t mean investors are willing to accept a lower rate of return in exchange for ESG benefits.
A breakdown of what investors will accept, % of respondents
[chart]
To create trust and boost investor support and buy-in companies should:
Take ESG reporting as seriously as their financial reporting
Actively engage the C-Suite in their ESG agenda
Drive towards a common set of ESG standards whilst leveraging the best of existing standards
Use greater transparency and reliable reporting
What you can do next to boost investor confidence:
Be upfront about prospects for long-term value creation
Be transparent with risk management strategy and include unexpected risks
Reimagine and redesign reporting and operationsDrive towards new outcomes and demonstrate a commitment to sustainable value creation
