Survey: 9 in 10 investors do not trust corporate ESG claims
While investors increasingly want companies to disclose more information on their environmental, social and governance (ESG) targets and progress, most find it difficult to trust business s claims at face value, and to compare different firms.
Better data and more unified disclosures could increase investor trust, the survey authors claim
That is according to the results of a survey of more than 4,600 individual investors across the US, US, France and Germany, commissioned by software-as-as-service company Workiva.
Published today (25 May), the survey results found that the majority of investors across all geographies (70%) believe that corporates have a responsibility to prove they are meeting ESG pledges to their current and prospective investors.
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Workiva Inc. (NYSE:WK) today released findings from a survey of individual investors that reveal approximately 70% of respondents believe organizations have a responsibility to demonstrate ESG performance to investors, with Gen Z and younger Millennial-aged investors (18-34 year-olds) the most demanding around ESG credentials. The survey revealed transparency around ESG disclosures is becoming integral to investor decisions, and companies will undoubtedly experience increased pressure from investors to be able to report on their progress.
“Our survey findings represent a powerful motivation for organizations to take a serious look at how they are reporting ESG and other non-financial data,” said Julie Iskow, chief operating officer of Workiva. “We believe there is a real competitive advantage in attracting today’s modern investors with a commitment to corporate transparency.”