Sustainability has been among the talk of the town in recent months, and investors have been pressing to understand how organisations incorporate this into their decision-making process, risk management, and financial statements.
According to PricewaterhouseCoopers International's Global Investor Survey 2023, the management of sustainability-related risks and opportunities has been seen as an important factor in decisions surrounding investments.
Data gathered from 345 investors and analysts revealed that they want better information, including the cost of meeting sustainability commitments and a clear road map for achieving them.
In addition, investors said that they want details on the impact of company actions on the environment, and on society. They want to know how a company’s sustainability plans square with its business model and, ultimately, its prospects for creating long-term value.
The PwC survey also found that investors largely agree that ESG should be directly embedded into company strategy, and that companies should make expenditures that address ESG issues relevant to their business—even in cases where doing so would reduce short-term profitability.
A significant majority of investors agree about the importance of ESG and sustainability, but the share that strongly agrees or strongly disagrees has shrunk.
On the other hand, the proportion of investors who strongly disagree about ESG’s importance in these same areas has declined as well.