Companies such as Google, Costco and Lowes have secured top spots for having the strongest reputation for ESG activities, in a new ranking.
The new ranking from Ipsos assesses public perception of company performance on environment, social and governance (ESG) issues. With three in 10 Americans now saying it’s more important for companies to focus on ESG over consumer needs, businesses operating in the US face heightened expectations for leadership on social and environmental matters. Ipsos ESG Watch acts as a benchmark for brands to measure their performance against, helping to determine whether they are seen on the right or wrong ESG track — and by whom.
Of the 30 companies and six sectors evaluated in the inaugural report, reflecting the views of around 3,000 Americans, Google earned the highest combined score on environment, social and governance issues, indicating widespread favourable perception toward its historical performance and current momentum. Other top-performing brands included Costco (in second place) and Lowes (ranking third), with fourth and fifth place going to Visa and Apple, respectively.
ESG MATTERS
Ipsos’ research indicates that citizens, consumers, employees, and investors increasingly agree that public and private sector organisations should improve both their internal governance and their external impact on the environment and society; a perception that can have an outsized impact on other key business metrics.
“ESG has captured the attention of citizens. The impact of the polycrisis and the perception that some institutions are failing (or not capable) in the new operating environment has raised the stakes for public and private sector organisations,” shared Claire Hanlon, ESG Country Lead for Ipsos in the US. “While ESG considerations should be central to all decision-making, public perception of performance in these areas can be just as important. Ipsos ESG Watch enables companies to understand how they rank so they can develop enhanced approaches to better align with public sentiment.”
ESG PERFORMANCE BY SECTOR
The bank and investment sector scored highest for performance on environment issues, followed closely by the retail and tech sectors. The retail sector, however, ranked highest both for its impact on society, and in terms of ethical and law-complaint decision-making. Conversely, the oil and gas sector earned lowest marks on these dimensions.
“The wide variation in perceptions of company performance within sectors suggests that ESG can be an important source of differentiation,” noted Lauren Demar, Chief Sustainability Officer and Global Head of ESG for Ipsos. “With 60% of Americans saying they ‘don’t know’ or hold neutral perceptions of how companies are performing on ESG, and 64% of global citizens saying they try to buy products from brands that act responsibly, now is the time for businesses to communicate their ESG initiatives and shape citizen-consumer perceptions — before they are defined for them.”
Access sector-specific data and company performance rankings here.
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