(1 March 2024 – Japan) Company executives, data firms, consultants and investors declare that corporate ESG disclosures are quickly becoming unmanageable for strategic decision makers.
While many market participants are vocally pursuing ambitious environmental, social and governance (ESG) goals and want companies to document progress, regulators and investors are increasing scrutiny of ESG statements for accuracy. The push to greater ESG integration is offset by politicians such as US Republicans pressuring companies to drop ESG policies altogether in a move described as “greenhushing”.
Reuters reports Asahi Sustainability Chief, Preeti Srivastav, has helped the Japanese brewer make several environmental and social pledges but has not been able to get the group to disclose all its progress. Asahi has brought forward its target to 2040 from 2050 for lowering net greenhouse emissions to zero yet has not disclosed how it plans to do achieve this.
“There are so many landmines in some of these areas. Anheuser-Busch InBev saw Bud Light sales slide as some US beer drinkers rejected at a promotion featuring transgender influencer Dylan Mulvaney. There are also fears employees and consumers could criticize slow progress on ESG targets or regulators and investors could file “greenwashing” lawsuits accusing firms of exaggerating ESG accomplishments” Srivastav commented.
“A lot of companies are hesitant, including us, to talk about any of our sustainability work until we can show even marginal improvement or impact” Srivastav added.