The business sector and governments worldwide are failing to meet public expectations regarding responsible behavior toward ESG standards, according to the fourth annual ESG Monitor, a report published by the global communications, advocacy, and research group SEC Newgate.
ESG standards (Environmental, Social, and Governance) are a set of criteria that investors use to assess how companies manage their obligations to the environment, society, and governance. ESG factors help investors make decisions that consider not only the financial aspects of a company but also its broader impact on society and the environment.
The survey, conducted among more than 14,300 people from 14 countries and territories, reveals that the public has high expectations when it comes to responsible government actions on ESG issues, with nearly three-fifths of respondents (58%) rating the importance of this issue with the highest scores, 9 or 10 out of 10.
A similar percentage of respondents (54%) believe the same is expected of large companies, while expectations for small and medium enterprises are somewhat lower (37%).
However, when it comes to results in implementing ESG goals, the ratings are modest for all three groups. Just over half of respondents rated the work of governments and large companies positively (53% and 54%), while small and medium enterprises received a slightly positive rating (58%).
Nearly two-thirds of respondents (65%) believe that companies should play a more active role in society, but it is essential to establish the right balance.
There is also a strong belief (73%) that achieving good results in ESG areas does not necessarily have to negatively affect profitability, with as many as 78% of respondents believing that companies should operate in the interests of all stakeholders, not just prioritize shareholders over other stakeholders.
Additionally, the survey showed that awareness of the term “ESG” remained stable in 2024, at 54% globally compared to 53% in 2023. Respondents in Hong Kong (43%), Singapore (41%), and the UAE (39%) were more likely to say they understand ESG well, while the lowest levels of understanding were recorded in Greece (11%), Colombia (11%), Poland (9%), and Spain (9%).
The survey also highlighted a key demographic group: people familiar with ESG issues are most often men under the age of 50, highly educated, and regular news followers.
Regarding communication on ESG issues, the vast majority of respondents (73%) believe that companies need to communicate more clearly about what they are doing to improve their environmental, social, and governance performance. Almost half of those surveyed (44%) said they do not trust what companies claim about their ESG activities and results.
Speaking about the survey’s findings, Fiorenzo Tagliabue, CEO of SEC Newgate Group, said:
“Our Global ESG Monitor clearly points to gaps in corporate communication, with the vast majority believing that companies need to communicate more clearly about what they are doing to improve their ESG performance and respond to the needs of all stakeholders.
Compliance with ESG reporting standards is just the beginning—it ensures that a company meets regulatory requirements but does not necessarily signify excellence or an ambitious plan to achieve significant impact through business activities.
It is clear that a thoughtful approach is needed to overcome skepticism, as many do not believe companies’ claims about ESG, particularly given the perception that companies are too politically oriented in their ESG initiatives.
The business sector is under heavy scrutiny regarding ESG issues, but a lack of ambition and transparency in terms of plans and achievements in the ESG area represents a serious reputational risk.”
The survey also explored the greatest concerns of respondents, focusing on their immediate needs.
The top five global concerns are:
- Ensuring quality and affordable healthcare for all
- Reducing crime and violence
- Addressing rising living costs
- Ensuring secure and affordable food supplies
- Strengthening the economy
Additionally, people were asked about the future of their countries. Opinions varied significantly from country to country, with the most optimistic respondents from the UAE, Singapore, and Hong Kong. Despite some progress compared to 2023, the majority still believe their country is heading in the wrong direction.
Percentage of people who believe their country/territory is on the right track:
Global average: 47% (49% in 2023)
UAE: 97% (98%), Singapore: 86% (84%), Hong Kong: 75% (77%), Poland: 50% (29%), Brazil: 47% (new data), Australia: 46% (47%), Spain: 40% (45%), UK: 37% (26%), Colombia: 37% (40%), USA: 37% (37%), Italy: 35% (39%), Germany: 29% (35%), Greece: 26% (new data), France: 16% (27%)
Commenting on the survey’s findings, Sue Vercoe, partner and director of SEC Newgate Australia, added:
“Our annual ESG Monitor shows that people have high expectations for organizations to act responsibly on ESG standards, yet the results shown by governments and companies remain disappointing.
Despite the daily challenges the public faces, most still believe it is important to address environmental, social, and governance issues—even if they do not view them through the formal lens of ESG. This presents a challenge for both the communication and operational aspects of companies and governments. There is still much room for improvement when it comes to ESG standards.”
