With summer officially over, our thoughts turn to football, Halloween, the upcoming holidays – and corporate budgeting for the new calendar year. According to a 2021 study from Verdantix, ESG budgets in companies were predicted to grow substantially going into 2023 – but the survey was conducted prior to this uncertain economic time.
Data from the new Verdantix Global Survey: ESG & Sustainability Governance, Budgets, and Priorities 2021 [downloadable for a fee] – collected from interviews with 400 leading corporate ESG and sustainability decision makers – has revealed that 57% of firms are expecting impressive double digit increase in budgets in 2022. Further analysis reveals that corporate spending is set to focus on initiatives relating to supply chain and climate change management….
This pressure is the result of increasing regulation concerning supply chain management, such as the EU Waste Framework Directive, and from stakeholder interest in supply chain performance…
Concurrently, sustainability initiatives linked with climate change related issues are set to receive considerable investment in the near future, according to 40% of survey participants.
Those are impressive predictions, but the new reality may threaten them. Many companies are tightening their belts due to inflationary shocks, continuing supply chain constraints and wildly unpredictable capital markets. The struggle between meeting ESG commitments and corporate spending will be a bigger issue than ever this budgeting season.
We have member-exclusive tools and resources to help you strengthen your position in budgeting for your ESG program, including checklists on Budgeting for Your DEI Initiative, Economic Opportunities for Environmental Improvements and Fighting ESG Fatigue. If you aren’t already a member with access to our checklists, podcasts, guidebooks, sample disclosures and other resources, sign up now and take advantage of our no-risk “100-Day Promise” – During the first 100 days as an activated member, you may cancel for any reason and receive a full refund.
