Reflections from the Ipsos 2025 Almanac on a year in ESG, in which Sue Phillips, Chief Sustainability Officer, calls 2024 a ‘flip flop’ year for ESG and sustainability – two steps forward, one step back.
Impact on business?
> Flip: The upcoming Ipsos ESG Council report, due in January 2025, reveals that while 55% of Chief Sustainability Officers agree that some leaders are diluting their commitments to ESG…
> Flop: … 90% agree that ESG is fundamentally changing the way businesses operate, up from 83% in 2023.
Legislation?
> Flip: 2024 has seen companies in Europe who turn over €40m+ preparing to comply with the CSRD (Corporate Sustainability Reporting Directive). The intention behind the legislation is for businesses to send a clear message to society, capital markets and other stakeholders that their longer-term approach to value creation must be aligned with a sustainable economy.
> Flop: The CSRD has faced significant criticism, mainly on excessive reporting. This is compounded by the recent postponement of the EU deforestation law (delayed under mounting pressure from the German government) and the recent calls to amend or postpone the 2035 ban on internal combustion engine cars.
Global public?
> Flip: People are now very clear; 80% agree we are headed for environmental disaster without rapid change to our habits (Ipsos Global Trends 2024 study)
> Flop: Who should take responsibility? 72% of individuals say they are already « doing all they can » to save the environment. This probably reflects the lack of agency people feel to impact further progress. There’s a need to bring consumers along the sustainability journey and engage them in the development of new offers, telling the positive story of progress and help them play their role in it.
So, where do ESG and sustainability go from here after this flip-flop year?
> As Harvard Business Review (Sept/Oct 24) highlighted, “Being a responsible business requires having a clear purpose – and that requires clear understanding of what the company can and cannot do to address societal and environmental challenges while providing long-term returns for its shareholders”.
Shall we look at the world with green-coloured glasses in 2025? Green is the colour of the dollar, but also of sustainability…
Making them work hand in hand is certainly a challenge but also the best option, bringing consumers along in the journey!