Recession putting corporate ESG efforts on hold?
This Politico article notes that 1 out of 3 CEOs says they’ve reevaluated ESG efforts ahead of a possible recession. Here’s the intro:
Sustainability may be on the chopping block as a recession looms — even if it helps businesses’ bottom lines.
Reconsidering environmental, social and governance efforts is the top step U.S. companies are taking to plan for recession, according to a new KPMG poll. One-third of the 400 U.S. CEOs surveyed this summer said they had already paused or reconsidered ESG plans in preparation for a downturn, and nearly 60 percent said they plan to pause or reconsider their companies’ efforts in the next six months. Half of the 925 CEOs surveyed from around the world said they too would pause or reconsider sustainability initiatives in the next six months.
At the same time, they say they’re seeing financial benefits from their ESG programs. Seven in 10 U.S. CEOs said their companies’ efforts improve financial performance, up from 37 percent last year. And about 65 percent of U.S. businesses included in the survey said they still plan on investing between 6 percent and 10 percent of revenue in programs meant to make their companies more sustainable – well above the global average.