New IBM Study Reveals Inadequate Data Hinders Progress Against Environmental, Social and Governance Goals

  • Executives cite inadequate data (41%) as a top barrier holding back ESG progress
  • Only 4 in 10 surveyed consumers feel they have enough data to make environmentally sustainable purchasing (41%) or employment (37%) decisions

A new global IBM (NYSE: IBM) Institute for Business Value (IBV) study, " The ESG ultimatum: Profit or perish ," of executives and consumers reveals that while an increased focus on environmental sustainability remains a top priority for consumers and business executives, inadequate data is a key challenge for both groups when it comes to achieving personal and corporate Environmental, Social and Governance (ESG) goals.

IBM Corporation logo. (PRNewsfoto/IBM)

The study* reveals that surveyed executives point to inadequate data (41%) as the biggest obstacle to their ESG progress, followed by regulatory barriers (39%), inconsistent standards (37%) and inadequate skills (36%). Without the ability to access, analyze and understand ESG data, companies struggle to deliver greater transparency to the consumer – a key stakeholder – and meet consumer expectations.

Seventy-four percent of surveyed executives believe that stakeholders understand their organizations' ESG objectives and performance, yet only about 4 in 10 surveyed consumers feel they have enough data to make environmentally sustainable purchasing (41%) or employment (37%) decisions.

"Consumer commitment to environmental sustainability and social responsibility has intensified with consumers voting with their wallets," said Jonathan Wright , Global Managing Partner Sustainability Services and Global Business Transformation, IBM Consulting. "As a majority of consumers choose to buy from and work for ESG leaders, businesses must prioritize transparency and break down barriers to ESG data."

Other study findings include:

Companies are investing in ESG and see it as good for business

  • 76% of surveyed executives say ESG is central to their business strategy.
  • Almost 3 in 4 surveyed executives (72%) view ESG as a revenue enabler rather than cost center, suggesting that contrary to popular opinion, ESG and profitability are not at odds.
  • 76% of executive respondents agree or strongly agree that their organization focuses on achieving ESG outcomes, not just reporting requirements.

Consumer commitment to sustainability has intensified, but consumers don't feel they have sufficient information to make informed choices

  • Roughly two-thirds of surveyed consumers say environmental sustainability (68%) and social responsibility (65%) are very or extremely important to them.
    • While more than half (51%) of respondents say cost of living increases have made environmentally sustainable decisions more difficult in the last 12 months, roughly 6 in 10 say at least half of their purchases were branded environmentally sustainable or socially responsible.
    • Only 1 in 3 surveyed consumers say they have sufficient information to make sustainable investing and saving decisions.

Executives admit their companies haven't made significant progress toward ESG goals, indicating data challenges impact their ability to measure progress and meet consumer demands

  • 95% of surveyed executives say their organizations have developed ESG propositions; however, only 10% say that their organizations have made significant progress against them.
  • Almost 3 in 4 surveyed executives (73%) say their organizations struggle to manage an overload of manual data, while 7 in 10 say they have difficulty consolidating or manipulating data.

The study highlights ESG leaders, a sub-set of respondents with greater maturity in operationalizing ESG, who are seeing higher revenue, improved profitability, deeper customer engagement by approaching ESG as a transparency play that creates strategic business opportunities. These role models provide a roadmap for organizations looking to overcome data-related challenges and create sustainable change that includes: automating ESG processes and reporting capabilities to keep data current; tapping AI for enhanced insights into performance, forward looking analysis, and scenario development; aligning with ecosystem partners on ESG metric definitions and standards; and proactively establishing ESG data governance principles with stakeholders.

"Data is the lifeblood of ESG. Now is the time for enterprises to act. By operationalizing ESG plans, enterprises are putting information in the hands of operators who can make informed business decisions that can improve their ESG impact on a daily basis," said Wright. "Organizations looking to increase stakeholder support and meet ESG reporting requirements should implement a sustainability roadmap that is inclusive of technologies, services and ecosystem partners that can position them for greater business success and help them address regulatory compliance," said Wright.

To view the full study, visit: https://ibm.co/esg-ultimatum

*Study Methodology

The IBM Institute for Business Value (IBV) surveyed 2,500 executives from across 22 industries and 34 countries, delving into their organizations' ESG strategy, approach, and operationalization; what benefits they expect from ESG initiatives; and how they weigh ESG against other business objectives. The IBV also surveyed more than 20,000 consumers across 34 countries about their attitudes toward sustainability and social responsibility, and how these beliefs influence shopping, investing, and career decisions.

About the IBM Institute for Business Value

The IBM Institute for Business Value, IBM's thought leadership think tank, combines global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv .

Media Contact:
Jamee Nelson
IBM External Relations
jamee.nelson@ibm.com

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/new-ibm-study-reveals-inadequate-data-hinders-progress-against-environmental-social-and-governance-goals-301798830.html

SOURCE IBM

News Provided by PR Newswire via QuoteMedia

IBM
The Conversation (0)
SAGA Metals Engages Paul McGuigan as its Qualified Person to Oversee Advancement of the Radar Ti-V-Fe Project in Labrador & Provides Corporate Update

SAGA Metals Engages Paul McGuigan as its Qualified Person to Oversee Advancement of the Radar Ti-V-Fe Project in Labrador & Provides Corporate Update

Saga Metals Corp. ("SAGA" or the "Company") (TSXV: SAGA) (OTCQB: SAGMF) (FSE: 20H) a North American exploration company focused on critical mineral discovery, is pleased to announce the appointment of Paul McGuigan, P. Geo., as its Qualified Person on the exploration and development of the Radar Ti-V-Fe Property (the " Project ") in Labrador. Mr. McGuigan will advise on standards of practice for QAQC, structural mapping, drilling and deposit modelling.

Mr. McGuigan, a Professional Geoscientist, has 50 years of international experience in economic geology and mineral exploration management, spanning grassroots exploration to feasibility studies and mining operations. Early in his career, he was employed by IBM, the Geological Survey of Canada, Imperial Oil, Pechiney Ugine Kuhlmann, Esso Minerals Canada and Westmin Resources.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Celebrating IBM Volunteer Excellence Across the World

Celebrating IBM Volunteer Excellence Across the World

At IBM, we believe in the power of driving positive impact in communities around the world. Each year, we are proud to recognize the outstanding contributions of IBMers worldwide who exemplify our commitment to volunteerism, through the IBM Volunteer Excellence Awards

These awards honor individuals and groups with exceptional dedication to making a positive impact. Together, the winners volunteered across 12 countries in 2023, working on diverse projects. From organizing coding workshops for girls in underserved communities to leading food distribution efforts in low-income neighborhoods, their contributions have touched and inspired many.

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
Rapidus and IBM Expand Collaboration to Chiplet Packaging Technology for 2nm-Generation Semiconductors

Rapidus and IBM Expand Collaboration to Chiplet Packaging Technology for 2nm-Generation Semiconductors

Agreement builds on existing collaboration between the two companies for the joint development of 2nm node technology

Rapidus Corporation a manufacturer of advanced logic semiconductors, and multinational technology company IBM (NYSE: IBM), today announced a joint development partnership aimed at establishing mass production technologies for chiplet packages. Through this agreement, Rapidus will receive packaging technology from IBM for high-performance semiconductors, and the two companies will collaborate with a goal of further innovating in this space.

News Provided by PR Newswire via QuoteMedia

Keep reading...Show less
Coca-Cola HBC, EY & IBM on the G in ESG

Coca-Cola HBC, EY & IBM on the G in ESG

By Charlie King

IBMOriginally published by Charlie King on Sustainability Magazine

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
The CEO of Usher's Nonprofit, 'Usher's New Look' Is Helping Build the Next Generation of Black Tech Leaders - Here's How

The CEO of Usher's Nonprofit, 'Usher's New Look' Is Helping Build the Next Generation of Black Tech Leaders - Here's How

Careshia Moore, CEO and President of Usher Raymond IV's youth focused non-profit organization, shares details on its groundbreaking AI-focused partnership with IBM.

IBMBY JASMINE BROWLEY

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×