Widespread distrust of corporate ESG reporting revealed

A new industry survey has found that most business leaders in major industries doubt their peers’ Environmental, Social and Governance (ESG) reporting.

To be precise, 76% of over 1,000 senior technology and ESG decision-makers across agriculture, mining, transport, and utilities companies are sceptical about the green claims made by their competitors. Furthermore, 80% reckon their competitors are more focused on perception rather than achieving tangible sustainability outcomes.

Shocking, eh? The survey was commissioned by satellite firm Inmarsat, apparently to support its messaging about how important satellite connectivity is for IoT. The stated reason for all this ESG scepticism is a lack of supporting data, you see, which Inmarsat reckons can be resolved by better use of satellite-connected IoT kit. Luckily, over 80% of respondents said data collected via IoT solutions is critical to building trust and improving ESG outcomes overall.

“You cannot manage what you cannot measure, so it is heartening to see so many organisations looking to IoT to assess and improve ESG reporting,” said Jat Brainch, Chief Commercial and Product Officer at Inmarsat. “There is no quick fix, but creating methodical benchmarks based on actionable data, and sharing the results, will play a critical role in re-establishing trustworthy ESG reporting.

“IoT is nothing without connectivity. Yet terrestrial coverage often cannot reach the remote locations where our most valuable data points frequently originate. By using satellites to close that connectivity gap, organisations can access data to make the right decisions right away. We need to make the most of that opportunity if we are to achieve Net Zero quickly.”

Another possible explanation for this extensive mutual distrust over ESG claims could be endemic sharp practice across the board in this area. Organisations like the WEF have been pushing ESG as the primary measure of corporate virtue for years and all the incentives are there to box-tick and inflate claims. If that’s the case then Inmarsat’s calls for greater data transparency may fall on deaf ears.

Get the latest news straight to your inbox. Register for the Telecoms.com newsletter here.