2023 ESG Survey

Entities in Australia, New Zealand, Malaysia, China, Hong Kong, Singapore, Indonesia are recognising the brand value to be found in being responsible members of their regional community, from proper consideration of environmental and social responsibility to good governance and advocacy. We at CPA Australia surveyed a number of groups and businesses to put together a picture of just how much ESG influences the decision making of our region's most prominent names in business.

Drivers and barriers

Many companies are recognising the changing winds approaching in the form of regulation and the rise of reputational risk as a factor in the face of the social media era, citing those as key drivers for businesses towards ESG alongside leadership from senior management. Major hurdles to be overcome included a skills shortage in the area and a lack of standardised reporting or framework for standards, which contribute to difficulty measuring and tracking the performance of ESG measures where undertaken.

Adoption and benefits

This year 93% of respondents reported that their organisations were employing ESG in some form, ranging from internal ESG policy, ESG-related targets and KPIs, sustainability reporting, and dedicated committees or cross-organisation taskforces. The trend is even more pronounced amongst larger bodies, with 95% of organisations of over 500 employees answering in the affirmative. Of those that answered yes, 33% directly cite the United Nations' Sustainable Development Goals in their corporate reporting.

We've also measured tangible benefits amongst adopters of ESG, with respondents that had adopted ESG measures 3% more likely to have reported growth in the past year.

Climate change

How will ESG develop in the future? With as much of our region's central hubs of business lie near the coast it only makes sense that climate change becomes a growing concern for many respondents, with 55% stating that climate change might have a significant impact on their organisation's strategic decisions over the next decade.