The importance of ESG to MPs and Business Journalists

The emergence of ESG (Environmental, Social, Governance) is not something to be taken lightly. In the most recent Ipsos Reputation Council report – made up of the opinions from 148 senior global corporate communicators – 76% believe that ESG is important for investors, 80% believe this is true for stakeholders (media, NGOs, legislators) and 77% agree it is important to employees. With business leaders now saying that ESG performance is intrinsically linked to a company’s future success, it is appropriate to ask is whether influential stakeholders such as MPs and business journalists also believe this to be true?

Responding to this, findings from a new ESG module on the Ipsos surveys of MPs and business journalists show a direct relationship between ESG performance and business success. Across both Conservative and Labour MPs there is majority agreement that a link exists between a company’s ESG performance and its attractiveness to investors. Agreement is even higher among business journalists.

When we look at ESG performance scores against corporate reputation, we can see a clear link between the two among business journalists and Labour MPs. However, the picture among Conservative MPs is more complex. In the charts below, each dot represents the ESG scores for individual companies – the further right a company is the higher their ESG score, and the further towards the top a company is the higher their favourability.

The more complex picture among Conservatives is explained by the party being more likely to consider other factors beyond ESG when judging a company’s reputation, whereas ESG plays a more central role for Labour MPs when forming an opinion of a company. Nevertheless, at the recent Conservative Party Conference in Manchester, the predominant theme across most events was around the government’s net zero ambitions. Conservative MPs were vocal around the government’s expectations that companies need to deliver on these targets and that the ‘green economy’ will lead to economic prosperity, particularly if the UK can be at the global forefront of innovation. As such, there is clearly an opportunity to engage with MPs from both sides of the house on ESG issues.

So where should a company focus its attention when it comes to ESG? In general, MPs and business journalists consider societal impact to be the most important pillar of ESG, with the focus on this area having been amplified by the Covid-19 pandemic. As an SNP MP explains, in reference to the importance of societal impact to the tech sector; “Local communities need to have access to technology so we saw an increase in inequality during the pandemic because children from deprived areas couldn't access digital devices etc. So technology has to be something that levels up right across the board, rather than just specific affluent areas.”

Focus does, however, vary by political party with Conservative MPs prioritising governance, and Labour MPs prioritising societal impact. As stated by a Conservative MP; “It is about the essential aspects of any business in general. As long as the business is run well that is the most important thing, that is objectively what businesses ought to be directly concerned about. The other aspects of society and the environment they just have to live within the expectations or legal frameworks but governance is key, regardless of anything else.”

There is further variation at the sector level, with societal issues seen as most important for the consumer and pharmaceutical sectors, governance for the financial services sector, and the environment for the energy sector.

While the importance of ESG is clear, the intricacies of what drives performance and how to communicate most effectively on the subject are far more complex. In this regard, the Ipsos surveys of MPs and Business Journalists help clients unpick the finer details and track their organisation’s performance on each pillar of ESG relative to competitors. With studies running twice yearly, the understanding gained can help pinpoint where businesses should focus their attention to improve ESG and reputation performance.

More information about our MPs and Business Journalists syndicated is available. Please get in touch with Guto Malgwyn Hunkin.

For more detailed results, please download the PDF charts