Reset or Retreat: The Ipsos ESG Council
This report moves beyond the headlines proclaiming the “death of ESG.” While some companies may have recalibrated their approaches, what we saw in 2024 did not represent a retreat from responsible business practices but rather a necessary “reset” for long-term viability and impact. Time will tell if the events of early 2025 have a significant long-term impact.
With great excitement, Ipsos shares the latest “Ipsos ESG Council Report 2025”. Like the previous versions, the report this year also offers an in-depth examination of the evolving landscape of Environmental, Social, and Governance (ESG) practices among prominent global corporations. This report, drawing from the insights of over fifty global sustainability leaders, delves into the critical recalibration of ESG strategies amidst shifting socio-political climates and expanding regulatory frameworks.
To start with, the report addresses the biggest challenges ESG is facing today. Council members conviction stands out with 49% feel businesses are the driving force for social change, compared to 29% who feel it is the politicians driving it. And, as high as 70% feels it is not better to remain silent on social issues to avoid potential reputation damages.
Furthermore, the report highlights the potential of technology, particularly Artificial Intelligence (AI), in revolutionizing ESG reporting and performance enhancement. This technological evolution is portrayed as a tool to not only improve transparency and efficiency in ESG endeavors but also to support companies in navigating the complex landscape of sustainability expectations. By leveraging such innovations, businesses can enhance their stakeholder engagements and align more effectively with broader societal goals.
Closer home in India also, the issues are no different from the other parts of the world. Similar pockets of excitement and concerns exist. It is encouraging to see that ESG initiatives in India are not restricted to multi-national or large business. Many medium and small organisations are taking steps forward and also contributing to innovative Indianized solutions which are suitable for the country.
It is quite evident that bridging the gap between the profit and purpose of the organisation is the future of ESG, and Governments across the world need to play a pivotal role. 78% ESG council members agree that governments should set firmer targets to achieve Net Zero.
There are enough headwinds for ESG initiatives across the world today and the challenges are growing - so is the support and number of patrons. Ipsos feels proud to contribute to the journey and help those trying to make this world a better place.
