2023-06-13 15:53:57
45% of Brazilian executives cite inadequate data as one of the biggest barriers to advancing ESG goals.
A new study from the IBM (NYSE: IBM) Institute for Business Value (IBV), “The ESG Data Conundrum“, done globally with executives and consumers, including Brazil, revealed that while environmental sustainability remains a priority for consumers and business executives, inadequate data is a key challenge for both groups when it comes to meeting goals. personal and business related to ESG (environmental, social sustainability and governance).
The study found that surveyed executives say inconsistent standards (47%) are the biggest obstacle to their ESG progress, followed by inadequate data (45%), inadequate skills (39%) and regulatory barriers (33%). . Without the ability to access, analyze and understand ESG data, companies struggle to provide more consumer transparency and meet their expectations.
Around 66% of executives surveyed in Brazil believe that stakeholders understand their organizations’ objectives and performance; however, only around 5 in 10 consumers surveyed feel they have enough data to make environmentally sustainable purchases (53%) or make employability-related decisions (44%).
“Each day, more consumers are choosing more sustainable options when buying,” said Marco Kalil, IBM Consulting leader in Brazil. “Now is the time to act. In an age of doubt, transparency is essential for companies to break through the barriers of ESG data. Regardless of what objectives, milestones or metrics a company reports on, ESG provides evidence and insights to open doors and amplify business value.”
Other study findings include:
Companies are investing in ESG and see it as good for business in Brazil.
- 78% of executives surveyed say ESG is critical to their business strategy.
- Nearly 8 in 10 executives surveyed (77%) view ESG as a revenue enabler rather than a cost driver, suggesting that, contrary to popular opinion, ESG and profitability are not at odds.
- 71% of executives surveyed agree or strongly agree that their organization is focused on achieving ESG results, not just reporting or what is required.
Consumer commitment to sustainability has intensified in Brazil, but consumers do not feel they have enough information to make choices.
- Nearly 9 in 10 of consumers surveyed say that environmental sustainability (87%) and social responsibility (83%) are very or extremely important to them.
- More than half of those surveyed (52%) say the rising cost of living has made it more difficult to make environmentally sustainable decisions in the last 12 months.
- Only 4 in 10 consumers surveyed say they have enough information to make sustainable investments and cost-saving decisions (39%).
Executives admit that their companies have not made significant progress towards ESG goals, indicating that data challenges impact their ability to measure progress and meet consumer demands in Brazil.
- 93% of executives surveyed say their organizations have developed ESG proposals; however, only 7% say their organizations have made significant progress.
- More than half surveyed executives (65%) say their organizations struggle to manage large amounts of manual data, while 57% say they have difficulty consolidating or manipulating data.
The study highlights ESG leaders, a group of respondents with greater maturity in operationalizing ESG and who are realizing higher revenue, better profitability and greater customer engagement by approaching ESG with transparency to create strategic business opportunities. These templates below 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; Leverage AI for enhanced performance insights, analysis, prospecting, and scenario development; alignment with ecosystem partners on ESG metric definitions and standards; and proactively establish ESG data governance principles with stakeholders.
“Data is the lifeblood of ESG. By operationalizing plans, companies will be able to turn their data into predictive insights to help assess their progress once morest benchmarks and make informed business decisions to improve their ESG impact on a daily basis,” says Kalil. “Leaders who elevate the role of ESG will be able to drive engagement, inspire innovation, improve operations and align ecosystem partners around shared strategic goals.”
To view the full study, visit: Link
Study Methodology
The IBM Institute for Business Value (IBV) surveyed 2,500 executives from 22 industries and 34 countries, diving into their organizations’ ESG strategy, focus and operationalization; the benefits they expect from ESG initiatives; and how they weigh ESG once morest other business objectives. The IBV also surveyed more than 20,000 consumers in 34 countries regarding their attitudes towards sustainability and social responsibility, and how these beliefs influence purchases, investment and career decisions.
Sobre o IBM Institute for Business Value
The IBM Institute for Business Value, IBM’s thought leadership expert group, combines global research and performance data with expertise from leading academics and industry thinkers to deliver insights that deliver intelligence to business leaders. For world-class Thought Leadership.
IBM press office
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