The elusive ESG

Oct 27, 2022 View in browser   By Jordan Wolman THE BIG PICTURE SEC Newgate's ESG Monitor Report People may not know what ESG is, but that isn't keeping them from making financial decisions based on it. Awareness around the term is incredibly low: 85 percent of American respondents in a survey recently released by SEC Newgate , a global consultancy group, reported either having never heard the term, or not knowing that it refers to environmental, social and governance issue. And that level aligns with the global average. Despite knowing little about ESG principles at the start of the questionnaire, more than half of Americans surveyed — and 62 percent of respondents worldwide — said companies should be penalized for lack of action on key issues after reading a brief description of ESG. A majority also said they have taken some sort of action against a company in response to an ESG issue, like avoiding using a product or service or warning others to do so. And people want to know more: On a scale of 0 to 10, with 10 being extremely interested, American interest in ESG issues graded out at 6.2, with the global interest pegged at 6.5. Respondents in the survey of more than 12,000 participants across 12 countries, including 1,001 Americans, were critical of ESG performance despite their limited knowledge, giving no type of entity higher than a 6.4 rating: Nonprofits scored the highest, with small companies second; large companies and national governments scored lowest. And 40 percent of U.S. respondents said they're willing to accept lower return on investment in companies with stronger ESG performance. SEC Newgate's ESG Monitor Report One thing that is consistent in public opinion: the general sentiment that businesses have a role to play in society. More than 75 percent of both U.S. and global respondents agreed that companies have a responsibility to behave as good citizens and consider their impacts on the planet. "This report speaks to the need for specifics in communicating around ESG," said Carly Meyerson , vice president at Global Strategy Group, which partnered with SEC Newgate in releasing the report. "At the onset, we know people care about companies having a positive impact, even if they don't understand what ESG is. And as we get more specific over the course of the survey and people learn more about what we mean by ESG, interest goes up."   NEW AND IMPROVED POLITICO APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. With a fresh look and improved features, the sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don't miss out on the app you can rely on for the news you need, reimagined. Already a POLITICO app user? Upgrade today! DOWNLOAD FOR iOS  – DOWNLOAD FOR ANDROID .     YOU TELL US GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is  editor Greg Mott , deputy editor Debra Kahn and reporter Jordan Wolman . Reach us all at gmott@politico.com , dkahn@politico.com and jwolman@politico.com . Want more? Don't we all. Sign up for the Long Game . Four days a week and still free!   SUBSCRIBE TO POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don't miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY .     WHAT WE'RE CLICKING — Apple is calling on its suppliers to help the tech giant reach its carbon-neutrality goals,  the Wall Street Journal reports . — Europe looks to Africa for help in coping with its gas crisis, the New York Times reports. — The International Energy Agency says peak fossil fuel demand could hit later this decade, the Wall Street Journal reports .   Follow us on Twitter Debra Kahn @debra_kahn Greg Mott @gwmott Jordan Wolman @jordanwolman   Follow us

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