New study reveals ESG trends among European companies

Original content provided by BDO Belgium.

BDO Belgium and Mercuri Urval recently surveyed 150 companies across 13 European countries to gain insights into companies’ attitudes towards the integration of environmental, social and governance (ESG) factors, the obstacles they face and their main drivers.

Here are the key findings:

•    A great majority of companies (75%) are embracing ESG as a means of value creation rather than merely checking a compliance box, indicating a growing understanding that sustainable business practices can drive innovation and growth
 
•    Nearly all companies surveyed (97%) believe that sustainability will change their business model and activities, which underscores the urgency of prioritising ESG initiatives
 
•    Stakeholders’ expectations are rising. Most companies (78%), for instance, have already received specific sustainability-related questions from their clients, followed by employees / future talent and public authorities/governments.  
 

To make progress on their sustainability performance, companies should embark on a comprehensive ESG journey which will allow them to enter a continuous improvement cycle that involves:

•    Building awareness, expertise and upskilling leaders and employees on key sustainability topics  
•    Developing a well-defined strategy with a clear ESG focus  
•    Measuring and disclosing ESG information 
•    Continually striving to improve sustainability practices to meet evolving stakeholder expectations and regulatory requirements.

Results

The survey's results show that the three key success factors in driving a company’s ESG journey are: embedding sustainability into the business strategy, leadership commitment and employee engagement.  

Business leaders are, therefore, instrumental for succeeding in the transformation towards more sustainability. Companies should equip them with the necessary knowledge to be able to identify ESG risks and opportunities, set measurable targets and KPIs and engage employees. By offering capacity building activities to leaders and managers, companies can foster a culture of sustainability and ensure that ESG considerations are integrated into every aspect of the business.
 

Finally, the study highlights some key differences between large companies and SMEs and suggests a roadmap of actionable recommendations for companies to move forward in their ESG journey, enabling businesses to create long-term value for all stakeholders.  

Read the full study: The ESG Imperative: Business trends among European companies 

Companies that demonstrate commitment to sustainability are more likely to attract and retain employees who are passionate about sustainability and who want to make a positive impact on the world.