SEC Newgate Global ESG Monitor: 2024 Research Findings

Expectations for what makes a ‘good’ business have changed forever

Today, success requires not only strong financial performance but also responsible leadership in sustainability, employee welfare, and community impact. In 2024, are corporates meeting community expectations? And how will corporates need to communicate in the future? 

Our fourth annual ESG Monitor polls over 14,000 people across 14 countries and territories to understand community expectations of organisations when it comes to responsible business practices. The analysis reveals what Australians expect of companies when it comes to acting on their impacts on people and the planet, and how they should communicate about what they’re doing.

While most Australians don’t ‘get’ the term ESG, they certainly understand the concept and the issues. These issues matter to them and they see a big gap between what they’d like to see happening, and what they do see happening.

It’s clear that the way organisations act and communicate on these issues is having a significant impact on their reputation, as well as on retail investor behaviour.

Australians have overwhelmingly positive associations with ESG-focused companies

Most Australians associate organisations focused on addressing environment, social and governance issues with the words ‘future focussed’, ‘responsible’, ‘good citizen’, ‘respectful’ and ‘responsive’, but nearly half also nominated ‘political’.

Act in the best interests of all stakeholders, not just shareholders More than four in five Australians believe companies should consider the needs of all stakeholders and shareholders, rather than simply acting in the best interests of their shareholders. Nearly three quarters believe companies can be profitable while also performing well on their ESG responsibilities.

Agriculture and healthcare top the list of ‘most responsible’ sectors

The sectors seen as performing best in terms of conducting business in responsible ways are agriculture, healthcare, education and training, renewable energy, and tourism. Many of these are performing better than the global average. At the bottom of the list are social media platforms, gaming, media, fashion, the chemical industry and the nuclear industry.

The research gives clear guidance as to where action will have the most impact

The biggest gaps between expectation and performance – and so the place where action will have the most impact – are treating employees fairly, being open and transparent, having leaders who are focused on conducting business in responsible ways, and focusing on ways to help customers who are under financial pressure.

Be careful when you choose to ‘speak out’

While 7 in 10 Australians agree companies should speak out on issues that are important to their employees and customers, this drops off significantly for issues that are unrelated to the company or overly political. This is not a decision to be made in the boardroom – it’s important to actually check-in with your stakeholders to understand if speaking out on an issue is seen as authentic to your brand.

Navigating the new normal

Our leading experts have been driving the conversation on reputation and responsible business. This research provides a critical framework for how companies can implement and communicate ESG efforts authentically to build their reputation and maintain social licence.

SEC Newgate Australia offers a deep understanding of reputation, community opinion, stakeholder priorities – and how they intersect with ESG.

If you are interested in having our full report and findings presented to your organisation, contact our team to schedule a briefing.

Sue Vercoe, Managing Partner, SEC Newgate Australia  |  [email protected]

Jasmine Hoye, Partner, SEC Newgate Research  |  [email protected]

Peter Collingridge, Director, SEC Newgate Research  |  [email protected]