78 Percent of Canadian CEOs Prioritizing ESG Because of Regulations: Survey

A large portion of Canadian business leaders are prioritizing environmental, social, and governance (ESG) principles, but most are doing so because of regulatory obligations, according to a new survey.
The survey was conducted by KPMG, which interviewed 1,325 CEOs between July 25 and Aug. 29.
Additionally, 75 percent of respondents said it would take at least three years to see substantial returns on ESG investments and 63 percent said they are struggling to fully implement ESG into their businesses “as a means of value creation.”
When asked about barriers to implementing ESG initiatives, 79 percent cited frequently changing regulations, 74 percent said ESG data collection and aggregation, 61 percent said difficulty in building a business case, 57 percent cited a lack of budget, and 55 percent said there was a lack of ESG technology or buy-in by senior leadership at their companies.
ESG is an investing principle that prioritizes environmental issues, social issues, and corporate governance. Environmental factors may refer to issues such as climate change, pollution, and energy efficiency, while social factors may include customers satisfaction or gender and diversity. Governance factors may refer to board composition, political contributions, or corporate culture.