ESG Readiness Assessment

ESG has become a top priority for leadership teams at many companies.

78% of executives said that ESG is a “significant” or “very significant” priority for their companies, up from just 46% in 2019.

A majority of corporate directors now recognize the need to address ESG issues and implement ESG programs.

87% of US public company directors reported that their board has oversight over ESG issues, up from 72% in 2019. Additionally, 63% of the directors surveyed said that their companies have an ESG program in place.

ESG considerations are growing in importance for a wide range of stakeholders, including consumers and investors, in addition to regulators and employees.

60% of global consumers now consider a company’s environmental and social impact when making purchase decisions and 71% of investors believe that companies should prioritize ESG issues.

Measuring and reporting GHG emissions is increasing in importance for companies.

89% of S&P 500 companies reported measuring their Scope 1 and 2 GHG emissions in 2021, up from 85% in 2019. In addition, 53% of these companies have set science-based emissions reduction targets, which align with the goals of the Paris Agreement.

For the majority of companies, Scope 3 emissions is by far the largest emissions source (on average, it can be a whopping 11X larger than Scope 1 and 2 emissions combined.)

Only 38% of S&P 500 companies reported measuring their Scope 3 GHG emissions in 2021.

You can’t manage what you don’t measure! There is growing importance among companies to track and measure their performance against specific ESG targets.

90% of S&P 500 companies have now published sustainability or corporate responsibility reports, which often include ESG targets, goals, and performance indicators. 86% of reporting companies had set specific sustainability targets in 2020, up from 81% in 2019.

Climate change is expected to have widespread and severe economic impacts, which will affect many companies across different sectors.

Up to 70% of companies in some sectors could be exposed to physical risks from climate change, such as extreme weather events, sea-level rise, and drought. In addition, almost all companies are likely to face transition risks as the world shifts towards a low-carbon economy, such as policy changes, technological disruptions, and shifts in consumer preferences.

Growing demand for ESG reporting from investors, regulators, and other stakeholders is driving more companies to embrace ESG reporting as a tool for managing risks, building reputation, and improving long-term sustainability.

In 2020, over 80% of the world’s 250 largest companies disclosed their sustainability performance. Additionally, the number of companies reporting on ESG issues has grown each year, with CDP’s 2021 report finding that 10,000 companies, cities, states, and regions disclosed through its platform, up from 8,400 in 2020.