Nevertheless, greater than half (52%) of the UK companies polled that mentioned they wished to change into a gold-standard inexperienced firm or Licensed B Company admitted the highest motive for pursuing ESG insurance policies was to enhance model notion and affect buyer buying choices.
This motive got here forward of exhibiting their dedication to folks and the planet (45%). As well as, 28% mentioned they’d solely undertake ESG measures to lift their profile as an employer of selection, whereas 22% would do it solely to drive earnings and gross sales.
The ballot additionally discovered greater than one-third (35%) of corporations pay lip service solely to the broader affect of their insurance policies – admitting they don’t financially reward something in any respect to environmental or social affect initiatives.
And, of the 65% that do, half solely give a tiny proportion of their earnings – a median of 1% of internet revenue.
Paul MacKenzie-Cummins, founder and managing director at Clearly, mentioned: “Our findings have confirmed the suspicions we now have lengthy held: the hype round ESG and gaining B Company accreditation has little to do with a real need to be a greater enterprise that balances revenue with the necessity for constructive environmental and social affect.
“Reasonably, it’s performative behaviour that has resulted in a tsunami of companies viewing ESG as a catalyst for post-pandemic development.”
The survey of senior enterprise leaders included chief executives, managing administrators, senior managers and founders.
Clearly is among the many PR businesses with B-Corp standing. Others to realize the usual embody Freuds, Forster, Don’t Cry Wolf and Milk & Honey. PRWeek reported final 12 months that a number of extra comms consultancies have been trying to observe swimsuit.
Non-profit organisation B Labs, which is behind the moral enterprise benchmarking scheme, was arrange in 2006 within the US; a UK operation was created in 2015. The B-Corp certification course of covers 5 key areas: governance, staff, neighborhood, surroundings and clients. It requires proof of accountable practices, together with employee compensation, range and company transparency.
