According to recent analysis of investment discussions within ESG company filings, GlobalData has found that companies within the financial services, power, oil & gas, and pharma sectors are discussing ESG investment opportunities more frequently in 2022, compared to other industries.
The leading data and analytics company names Credit Suisse, NatWest Group, Enel, Exxon Mobil, and Novartis among the companies that had mentioned ESG-related keywords the most within investment discussions.
Financial services companies mentioned ‘Climate’ the most in 2022 ESG filings, with discussions largely focusing on which invests can help prevent climate change and which partnerships could help their clientele address low-carbon initiatives. How to reduce the impact of loans, investment offerings and insurance products on the climate were also points of discussion,” Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments.
These findings also support the findings of GlobalData’s report, ‘ESG (Environmental, Social, and Governance) Strategy Survey 2021’, released earlier this year, which noted that these industries ranked highly against other sectors in questions around the impact ESG would have on their business, the role ESG would play in their investment decisions, and whether they would increase investment to meet ESG goals.
For example, 91% of power ESG executives expected that their companies would increase investment in ESG in the next five years (followed by 88% for oil & gas, and 82% for pharma.
“Financial services, power, oil & gas, and pharma are some of the highest exposed to ESG in terms of their business models and regulation, so it is good that they’re aware of the issue and talking about the importance of ESG,” Luke Gowland, Thematic Analyst at GlobalData, said.
However, caution must be taken. I’d take everything these companies say about ESG in their filings with a pinch of salt, they may be using their filings as an opportunity to greenwash investors and the public, for example.”
GlobalData’s Company Filings database also identified ‘Employees’, ‘Governance’, and ‘Customers’ as other keywords linked to ESG investment.
Discussions in the financial services and oil & gas sectors included the ‘governance’ portion of ESG, with companies highlighting the importance of transparent corporate governance.
