Bloomberg Intelligence ESG Market Navigator
Bloomberg Intelligence launched a global survey of C-Suite executives and senior investors in collaboration with Bloomberg New Economy on November 8, 2023.
Executive Summary
Cutting through the noise, our inaugural ESG Market Navigator survey reveals how Environmental, Social and Governance (ESG) has moved into the C-suite as a backbone of financial markets and corporate strategy, driven by global regulation and competitive ambitions. Investors say geopolitical risks may deter ESG plans, and only 55% of executives presently see ESG as a top-two priority, yet long-term commitments are intact. Our survey found 85% of investors believe ESG leads to better returns, resilient portfolios and enhanced fundamental analysis, while 84% of executives say it helps shape a more robust corporate strategy, with 84% considering it in M&A and 81% worried about losing market share if they trail peer efforts.
Despite polarized views, our survey finds investors and executives committed to ESG in a bid to improve profit, competitiveness and brand value. Global regulation anchors ESG in financial markets and corporate strategy, yet challenges include data consistency and fund labeling for investors, and transition costs and supply-chain risk for companies. Though plans may be delayed as short-term attention shifts to geopolitical and macro concerns, 85% of investors and companies plan to boost ESG investment.
Accountability is in focus for 2024, as 60% of investors hold companies answerable and 40% of executives take ESG questions on half their investor calls. Among both groups, 90% see AI as a way to enable traceability, improve data and spot controversy. Water, the circular economy and biodiversity join clean energy as key issues.
The ESG Market Navigator, a survey of 250 C-suite executives and 250 senior investors from around the world, was developed by Bloomberg Intelligence for release in collaboration with the Bloomberg New Economy Forum. The online questionnaire was carried out by GLG in October. The distribution of respondents was 35% in each of the US and EMEA, and 30% from APAC, across industries. Questions covered five topics: Context, Practice, Communication, Climate and 2024 Outlook.
Read an extract of BI ESG Market Navigator.
For more information, contact Adeline Diab, Global Director of ESG Research and Strategy, Bloomberg Intelligence: adiab15@bloomberg.net
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This survey was developed and conducted in collaboration with the Bloomberg New Economy Trade and Climate Councils.