MILAN – The business sector and governments around the world fail to meet citizens’ expectations when it comes to responsible behavior according to ESG standards, according to the fourth annual ESG Monitor, a report published by the global communications, advocacy and research group SEC Newgate.
The survey* of more than 14,300 people from 14 countries and territories reveals that the public has high expectations when it comes to responsible government action on ESG issues, with nearly three-fifths of respondents (58%) rating the importance of the topic as the highest, 9 or 10 out of 10.
A similar percentage of respondents (54%) believe that the same is expected of large companies, while expectations for small and medium-sized companies are somewhat lower (37%).
However, when it comes to the results in the implementation of ESG goals, the ratings are modest for all three groups. Only slightly more than half of the respondents rated the work of governments and large companies with positive ratings (53% and 54%), while small and medium-sized companies received a slightly positive rating (58%).
Almost two-thirds of respondents (65%) believe that companies should play a more active role in society, but it is necessary to establish the right balance.
Also, there is a strong belief (73%) that achieving good results in ESG areas does not have to negatively affect profitability, while as many as 78% of respondents believe that companies should operate in the interest of all stakeholders, and not prioritize shareholders over other interested parties.
In addition, the survey found that awareness of the term “ESG” remained stable in 2024, at 54% globally compared to 53% in 2023. Respondents in Hong Kong (43%), Singapore (41%) and The UAE (39%) was more likely to say they had a good understanding of ESG, while the lowest levels of understanding were recorded in Greece (11%), Colombia (11%), Poland (9%) and Spain (9%).
The research also highlighted a key demographic group: people who are familiar with ESG topics are mostly men under 50 years old, highly educated and regularly follow the news.
Regarding communication on ESG issues, the vast majority of respondents (73%) believe that companies need to communicate more clearly about what they are doing to improve their performance on environmental, social and governance issues. Almost half of those surveyed (44%) said they do not believe what companies claim about their ESG activities and results.
Speaking of research results, Fiorenzo TagliabueCEO of SEC Newgate Group, stated: “Our global ESG Monitor clearly points to gaps in corporate communication, with a large majority believing that companies need to communicate more clearly about what they are doing to improve their ESG performance and respond to the needs of all stakeholders.
Compliance with ESG reporting standards is only the beginning – it ensures that a company meets regulatory requirements, but does not necessarily mean excellence or an ambitious plan to achieve significant impact through business activities.
Clearly, a thoughtful approach is needed to overcome skepticism, as many do not believe companies’ ESG claims, especially given that they believe companies are too politically oriented in their ESG initiatives.
The business sector is under great scrutiny when it comes to ESG issues, but the lack of ambition and transparency regarding plans and achievements in the ESG area represents a serious reputational risk.”
The survey also examined the biggest concerns of the respondents, with a focus on their immediate needs.
The five main global concerns are:
- Ensuring quality and affordable health care for all
- Reduction of crime and violence
- Coping with the rising cost of living
- Ensuring safe and affordable food supplies
- Strengthening the economy
In addition, people were asked about the future of their countries. Opinions differed significantly from country to country, with respondents from the UAE, Singapore and Hong Kong the most optimistic. Despite some progress compared to 2023, most still believe their country is headed in the wrong direction.
Percentage of people who believe that the direction of their country/territory is on the right track:
Global average: 47% (49% in 2023)
UAE: 97% (98%)
Singapore: 86% (84%)
Hong Kong: 75% (77%)
Poland: 50% (29%)
Brazil: 47% (new data)
Australia: 46% (47%)
Spain: 40% (45%)
UK: 37% (26%)
Colombia: 37% (40%)
SAD: 37% (37%)
Italy: 35% (39%)
Germany: 29% (35%)
Greece: 26% (new data)
France: 16% (27%)
Commenting on the survey results, Sue Vercoe, partner and director of SEC Newgate Australia, added: “Our annual ESG Monitor shows that people have high expectations of organizations to behave responsibly in terms of ESG standards, yet the results shown by governments and companies remain disappointing.
Despite the day-to-day challenges facing the public, most still believe it is important to address environmental, social and governance issues – even if they do not view them through a formal ESG lens. This presents a challenge for both the communication and operational aspects of the work of companies and governments. There is still a lot of room for improvement when it comes to ESG standards.”
O SEC Newgate-u
- SEC Newgate is a global strategic communications and advisory group, based on research and analysis, based in Milan, Italy.
- They work at the intersection of business, politics, communities, markets and media, in order to achieve positive results for clients and communities in a connected world, where companies increasingly need communication partners with strong local roots, global reach and true entrepreneurial spirit, led by talented people.
- The SEC Newgate team operates seamlessly across five continents, enabling clients to clearly articulate their purpose and values, providing 24/7 advice and support and executing campaigns at local, national and international levels.
- More information is available on the group’s website: secnewgate.com
O V+O Group
V+O is the leader in the Southeast European market and is part of the SEC Newgate global network. It is a reliable partner and reference agency for more than 350 companies throughout the region. It provides communication services in all areas, from public relations and advocacy, to engaging investors and
sustainability program. The strength of V+O Group lies in the team of 210 experienced professionals and the integration of insights, analytical thinking and social metrics. V+O stands for diversity in opinion, perspectives and origins. More information is available on the group’s website: www.vando.gr
How the research was conducted*
SEC Newgate surveyed more than 14,300 people online in 14 countries and territories between July 4 and 29. Participants were recruited from a market research panel and the survey was translated and completed in the appropriate language where necessary.
Quotas are determined by age, gender and location to ensure a representative sample of citizens over 18 years of age, and the final results are adjusted for actual age and gender proportions within each country or territory. For the “overall” results, each country is given equal importance.
Countries and territories include: Australia, Brazil (new region in research), Colombia, France, Germany, Greece (new region in research), Hong Kong, Italy, Poland, Singapore, Spain, UAE, UK and US.
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