Social responsibility and sustainability have become crucial in the business world in just five years. The outside world expects the business community to share responsibility for passing on a better world to future generations by supporting the sustainable transition – both in relation to climate, environment, people and society.
That is the main message from Djøf’s independent ESG panel of 51 experts, who have taken the temperature of business life’s challenges and opportunities in the sustainable transition. The panel assesses that social responsibility plays a greater role in business’s strategic decisions. The panel also assesses that there is potential to integrate ESG even more into the companies’ business strategy.
– Our survey shows that companies have increased their focus on sustainability over the last five years. More resources are used on ESG and the agenda plays a greater role when strategic decisions have to be made, says the head of Djøf’s ESG panel, Gry Möger Poulsen, in a press release.
Facing a new task
The panel assesses that the business world’s motivation to work with ESG is mainly driven by political regulation and by investors. In addition, the panel notes that business is faced with a major new task in implementing the new EU rules on ESG reporting:
– With the new requirements for transparency and data within sustainability, the competition for ESG performance will become higher. The bar is being raised, and this will hopefully create both new business opportunities and positive results for sustainability, says Gry Möger Poulsen.
The companies do not meet the target
The panel assesses that although the companies contribute positively to the transition to more sustainability, they are not on target. ESG must be anchored in top management, says Anne Waagstein, chairman of Djøf Privat and member of Djøf’s ESG panel:
– The work with ESG must take up even more space in the executive corridor and in the boardroom, so that it becomes a key part of the company’s strategy. ESG must not be reduced to a ritual reporting exercise, but seized as an opportunity to create business for the company and value for society.
S and G must also be included
According to the panel, business today uses the most resources on E, environment and climate.
– As chairman of the privately employed members in Djøf, I am concerned with S’et and how we ensure socially responsible companies and sustainable workplaces. We must include S and G, so that companies take responsibility for both society and employees. The sustainable and the financial aspects go hand in hand and reinforce each other, says Anne Waagstein, chairman of Djøf Privat in the press release.
Djøf’s independent ESG panel consists of 51 experts from private companies, interest organisations, think tanks and universities.
