ESG Roundup

Recently released surveys and studies on Environmental, Social, and Governance (ESG) delve into public interest and understanding of this term, while also evaluating its potential impact on businesses and lawmakers as they prepare for the 2024 election. In this week's roundup, we dive deeper into the current ESG conversation and explore future trends companies need to think about as they plan for 2024. Read more about the journey of ESG, how its past has influenced the current political and business landscape, and its role in sustainable investing and initiatives.?

"Americans Worried about Honesty and Openness of 2024 Elections" - Public Affairs Council??

A recent Pulse Survey by the Public Affairs Council examined the public's opinion on the 2024 presidential election. According to the survey, 59% of the public viewed the Republican Party as more pro-business, compared to 43% for the Democrats. However, deeper analysis of the data shows that Democrats are more likely to support businesses addressing major social issues. As a trusted source for political news, companies will play a crucial role in delivering accurate election news to their employees in 2024.?

"ESG is a Four Act Play and Intermission is About to End" - JD Supra?

The journey of socially responsible investing has progressed and become more mainstream in the last few years. Sustainable investment funds emerged in the 1990s and as a result, large corporations incorporated ESG tenets into their strategies, drawing both criticism and support from stakeholders and customers. Organizations sought expert advice to navigate the evolving conversation surrounding ESG, prompting companies to proactively implement socially responsible investments into their long-term planning. As the transition towards a sustainable economy continues, companies will continue to evolve their strategies to meet their ESG objectives and business goals.?

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"Most Americans Still Unclear About What ESG Means, Survey Finds" - Forbes??

ESG is gaining traction in state capitals across the country, but members of the general public aren’t familiar with the term and overall concepts. A survey by Global Strategy Group and SEC Newgate found that 78% of Americans are not familiar with ESG, have never heard of it, or aren’t sure what it means. Despite the public's limited focus on the subject, right-wing voices persist in criticizing ESG, prompting corporations to address the issue. The survey also revealed that 72% of respondents support corporate action on these matters, and many believe companies should take a stand on important issues for their employees. The report confirms the growing importance of diversity and inclusion, particularly among younger generations like millennials and Gen Z, who will soon shape investment and purchasing decisions.?

"Top 5 ESG Trends to Watch in 2024" - FiscalNote??

ESG will remain in the spotlight as we get closer to Election Day. There are five key trends emerging that will set 2024 up to be an important year for ESG and corporate sustainability.??

1. Increase in public disclosures: 2024 will be known as “The Year of Compliance,” as companies are mandated to meet sustainability measurement and reporting requirements. This shift in reporting will require businesses to disclose emissions data on both company and product/service levels.??

1. More significant focus on preventing greenwashing: There will be increased scrutiny of carbon offsets and guidance from leaders in the voluntary carbon market.?

1. A stronger correlation between sustainability and finances: ESG teams are likely to work more closely with finance and risk management teams in 2024, with internal prices for carbon and regulation of the environment taken into consideration.??

1. Scope 3 emissions included in reporting: Most voluntary emissions reports have steered clear of disclosing Scope 3 emissions, but as consumers call for more transparency, companies may no longer be able to skim past them in their reporting.???

1. Expansion of those required to report: 2024 will see an increase in reporting metrics across the board. New laws may require those same reports from private companies, typically overlooked in these conversations.?

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