Businesses believe COVID-19 spurred action on ESG issues
Summary
Filipe Oliveira, Thematic Analyst at GlobalData, comments “The sudden disruption of numerous business activities due to COVID-19 led many to realize that environmental action was much more feasible than previously thought. As consumers are looking towards brands for environmental leadership, many companies have pledged to drive sustainability changes, most notably in the power sector, by announcing a transition to cleaner resources and energy efficiency. In the meanwhile, great strides have been made towards ESG goals—for example, there were significant renewable capacity additions globally during the pandemic, particularly for technologies such as solar PV and wind power.” Bargavi Gandham, Oil & Gas Analyst at GlobalData, comments “Since the COVID-19 outbreak, leading oil and gas companies have been re-evaluating their operations, with emphasis on clean energy. Overall, the pandemic has enabled the industry and its people to understand and appreciate the importance of ESG.” Filipe Oliveira, Thematic Analyst at GlobalData, notes“Huge focus has bee n placed on environmental issues. Inadequate governance practices will make it more likely that companies will fail to meet ESG goals, including those that would improve their social and environmental records.