Investors and executives see ESG as key to future strategy

Bloomberg Intelligence’s inaugural ESG Market Navigator survey, in collaboration with Bloomberg New Economy, reveals a strong commitment to ESG principles among investors and C-suite executives, despite current geopolitical and macroeconomic challenges.

The survey gathered opinions from 250 global C-suite executives and 250 investors and found that 85% of respondents plan to increase ESG investment over the next five years.

While only 55% of C-suite executives currently view ESG as a top priority, the survey indicates significant long-term support for ESG initiatives.

Executives acknowledge the benefits of ESG in enhancing corporate reputation, access to capital and competitiveness, found the survey. A substantial 84% believe ESG contributes to a more robust corporate strategy, and 81% expressed concerns about losing market share without ESG integration. Additionally, 70% see energy-transition efforts as a competitive edge, and 75% recognise the risks of ignoring ESG in terms of revenue loss and activism, said Bloomberg. 

Investors echo these sentiments, with 85% reporting that ESG leads to better returns, stronger portfolios and improved analysis. Despite facing challenges like data consistency and fund regulation, a majority believe ESG can outperform the market in the next 12 months, enhance investment portfolio resilience and attract or retain clients.

The survey also highlights a divergence between investors and executives on regional ESG leadership, signalling varying perspectives in different areas of the world. 

Adeline Diab, global ESG research and strategy director at Bloomberg Intelligence, said: “ESG has moved from a fringe concern, to mainstream and finally, to a mandated necessity. We expect 2024 to be about ESG accountability and an era where investor-corporate dialogue will be vital, 60% of investors hold companies answerable on ESG, while 40% of executives face ESG questions on over half their investor calls. I firmly believe that scrutiny will help shape a more credible ESG market over time.”