International law firm Simmons & Simmons has published independent research on attitudes to investment in sustainability.
The new report, which seeks the views of over 700 global senior executives and major investors – most of whom represent billion dollar companies – examines where they see the greatest opportunities in ESG (environmental, social and governance) investments, and where they see emerging risks.
The research finds that despite challenges to sustainability investment following recent shocks to the global economy, the vast majority of leading businesses and investors regard sustainability as an avenue to profit and growth.
84% of executives and investors think that businesses investing most effectively in sustainability will perform best within the next decade – while a majority of respondents (61% executives and 66% investors) believe that businesses playing more of an active role in creating a sustainable economy will outperform those who are merely minimising their impact.
Senior business executives regard securing access to finance as the biggest prize on offer in sustainability – yet they are not fully aligned with investors’ needs, who expect businesses to take more action on ESG.
Of all the sectors within sustainability, businesses and investors see the most significant opportunities in the blue economy. Biodiversity has also rapidly risen up the business agenda, while investing in diversity and inclusion is regarded as a high priority.
Alongside opportunities, the report highlights several risks identified by businesses and investors, with legal action from failing to comply with regulations ranked as the biggest sustainability-related fear. Reputation is also top of respondents’ concerns – with executives and investors reporting the prospect of reputational damage from legal action as a greater concern than facing legal penalties.
Commenting on the report, Louis-Maël Cogis, Country Head and Partner of Simmons & Simmons Luxembourg, said: “This research shows that the majority of businesses see sustainability as a vehicle for growth and profit, rather than just another box to tick. In the face of challenges to ESG investment, there is consensus from senior executives and investors that those who go furthest today will make the greatest gains tomorrow.”
Read the full report here: “A sustainability state of mind: unlocking growth and profit”
Notes:
- This research was undertaken independently by Momentum ITSMA for Simmons & Simmons
- The survey was conducted over July-August 2023, with 600 senior business executives and 100 investors responding, across the USA, UK, Europe, Middle East and Asia.
- Senior business executives (GCs and C-suite members) surveyed are drawn from six sectors: financial institutions; healthcare and life sciences; technology, media and telecommunications; asset management and investment funds; energy and natural resources, and real estate / infrastructure.
- Investors surveyed comprise of asset managers and asset owners.
