- Elisa Turner
90% Of CEOs/CFOs Don’t Know Their ESG Scores – A Potentially Ruinous Mistake
Updated: Jun 15, 2021
True leaders manage their ESG scores as diligently as they do their financials.
Today, having an ESG and climate plan is as critical as having a financial plan – it is an essential component of an organization’s business and strategic plan.
Did you know, every day dozens of ratings agencies are collecting ESG data and scoring your organization on ESG performance? Stakeholders are making decisions based on these 3rd party unverified scores, leaving a company’s reputation, and its ability to do business, vulnerable to algorithms on many fronts.
Yet, in the USA 90% of organizations do not have a clearly defined ESG strategy or know their ESG scores, impact risks or value creation opportunities.
In a world already facing destabilizing climate impacts, along with increased ESG disclosure requirements mandated by the SEC, stakeholders and investors, we keep asking why so many companies haven’t planned for a future that is already here. The response is threefold:
A lack of understanding of the ESG landscape, ranging from standards to scores to materiality
A lack of regulation
A lack of time in a CEO’s/CFO’s day
These excuses are no longer valid, as:
Over the past months the SEC, G7 and International Accounting Standards Board have agreed a unified set of Sustainability Accounting Standards are needed, this will pave the way for ESG regulations. The initial standards are expected to be released November 2021.
Impakt IQ handle the heavy lifting, while guiding CEOs/CFOs through every step of their ESG journey.
Those organizations lacking an integrated ESG plan will miss out on the opportunity of participating in the new impact economy, and will potentially fall victim to the fatal risks of moving too slow.
If the clear business case for addressing ESG and climate change doesn’t propel every CEO/CFO to take action, then perhaps the surge in outside pressure might.
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