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- Governance Takes the Lead: 61% of companies emphasize governance in their ESG strategies, marking a shift from previous years.
- Diverse Leadership: C-Suite leaders and Chief Compliance Officers are increasingly steering ESG programs, reducing reliance on legal departments.
- ESG as a Strategic Tool: 52% of organizations report ESG driving changes in business strategy, despite reduced confidence in overall ESG programs.
Governance Reemerges as Top ESG Priority
Morrison Foerster’s 2024 ESG survey, conducted with Corporate Counsel, reveals a notable shift in corporate focus back to governance. This year, 61% of respondents highlighted governance as their primary ESG concern, reflecting an increase from 53% in 2023. Susan Mac Cormac, global co-chair of Morrison Foerster’s ESG + Sustainability and Social Enterprise + Impact Investing practices, emphasizes, “The future of ESG is helping organizations see around climate, governance, and human capital corners so they are not only prepared but can exploit the opportunities that arise.”
Diversification in ESG Leadership
A key finding from the survey is the diversification of leadership in ESG programs. While general counsels were once the primary leaders, this year only 40% reported leading their company’s ESG strategy, down from 77% in 2022. C-suite leaders and Chief Compliance Officers are now more involved, which is critical for achieving effective governance and operational efficiencies.
ESG as a Driver for Strategic Change
The survey also underscores the role of ESG in strategic decision-making. Over half of the respondents (52%) reported that ESG considerations influenced changes in their business strategy, a significant rise from previous years. Additionally, 39% of companies adjusted their approaches to climate risk, and 33% were driven by changing consumer preferences for inclusive, climate-friendly policies.
Challenges and Confidence Issues
Despite these strategic shifts, confidence in existing ESG programs has declined. Only 44% of respondents feel confident in their ESG efforts, a steep drop from 69% in 2023. Private companies, in particular, reported a significant drop in confidence, from 73% last year to just 34% in 2024.
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The 2024 ESG survey by Morrison Foerster highlights the growing importance of governance in ESG strategies and the increasing involvement of diverse leadership in these programs. As Mac Cormac points out, “Smart organizations are preparing beyond regulatory disclosure requirements,” focusing on how ESG can enhance risk management and shareholder value. Governance is back in focus, and the future of ESG will depend on internal collaboration, good governance, and innovative technologies.
To explore the full survey findings and gain more insights from Morrison Foerster’s ESG team, visit their ESG + GCs resource website.