The consulting company Valoria and CSRmedia.ro launched the first edition of the study “Dynamics and perspective of the ESG domain in Romania”. This is the only study that brings to the attention of the business environment clear results regarding the strategies, approaches and difficulties of adopting ESG (Environment, Social, Governance) in Romania.
Conducted at the end of 2023, through a questionnaire answered by 191 representatives of important multinational and entrepreneurial companies, the study brings to the fore the different perspectives of the four categories of respondents: CEO and top management, the CSR/ESG team, the marketing team and, separately, other middle management managers.
The importance of sustainability is reflected in the ESG domain regulation
According to the results, 64% of CSR/ESG team members, 58% of marketing team members and 51% of top management team members say they are very familiar with the concept of ESG. This underlines the importance these companies and categories of professionals attach to the field of sustainability and social responsibility.
Another aspect highlighted by the study is the fact that 65% of companies believe that regulatory changes and stricter standards are the main transformations observed in the ESG domain in the last 3 years. At the same time, 25% of the members of the top management team and 25% of those of the CSR/ESG team say that the transparency brought by ESG in terms of previously unreported data represents the most obvious change in this field.
Of course, things are never simple, that’s why 59% of the responding companies mentioned data management and reporting in the first place among the challenges encountered in the implementation of ESG practices, while 55% mentioned the allocation of the necessary resources in this area.
Integrating ESG and choosing relevant themes in the overall strategy
Regarding the integration of ESG aspects into the overall strategy, 53% of companies have clearly defined their ESG values, principles and mission. At the same time, 52% believe that they have best integrated environmental aspects into their ESG strategy. Another 55% of companies say investors demand clear ESG goals.
Differences in perspective also become apparent in identifying relevant ESG themes. If 37% of companies have a mixed process to identify them, 34% have an internal process, and only 10% measure the company’s current ESG impact very well.
The results highlight that all categories of respondents consider resistance to change to be the main challenge encountered in the implementation of ESG practices, with varying percentages: 29% marketing team, 24% CSR/ESG team, 23% middle management managers and 19% general directors and the top management team.
Importantly, 76% of companies engage their employees in ESG initiatives through awareness and education, 57% through creating a culture of sustainability, 31% through personal development opportunities, and 22% through recognition and rewards.
The costs of ESG implementation justify the benefits to the company
The results of the study show that 69% of companies consider the costs associated with the ESG domain to be very high, but largely justified by the benefits brought to the company. In addition, 61% say that ESG initiatives have had a positive impact on the organization’s performance.
The study also points out that 52% of the responding companies estimate that the importance of the ESG domain will increase significantly in the next 5 years, and 55% say that ESG-related regulations will become more rigorous in Romania in the near future.
