Corporate Treasurers Become More Selective: Insights from TreasurySpring’s ESG Survey
TreasurySpring has recently released its annual sustainable finance survey, in collaboration with the London Stock Exchange (LSE) and the Association of Corporate Treasurers (ACT). This year marks the third iteration of the survey, providing a comprehensive global overview of how corporate treasurers are adapting their ESG strategies amid evolving market conditions, regulatory pressures, and economic challenges.
Key Findings from the 2024 ESG Survey
The 2024 survey encompasses insights from treasurers overseeing approximately £80 billion in cash holdings. The results indicate a significant shift in corporate attitudes towards ESG:
- Declining Investment in ESG Products: The percentage of organizations not invested in institutional ESG products has surged to 55%, up from 32% in 2023.
- Reduced Influence of ESG: The role of ESG in corporate cash investment strategies has diminished, decreasing from 63% in 2022 to just 30% in 2024.
- Growing Importance in Supply Chains: ESG considerations in supply chain management have risen from 35% to 47%, driven by increased compliance requirements and reputational concerns.
- Changing Risk Perceptions: Concerns about greenwashing have decreased significantly, from 69% in 2022 to 44% in the latest survey.
Expert Insights on ESG Trends
According to Nigel Owen, Head of Corporate Origination at TreasurySpring, “The fluctuating influence of ESG on cash investment strategies is a frequent topic of discussion among our clients. Our findings suggest that while ESG investment may be retracting, it is not being wholly abandoned.”
Owen further emphasized the evolution of ESG commitment, stating, “Companies are transitioning from broad goals to more concrete, impactful strategies that focus on operational effectiveness, investor alignment, and quantifiable results. The challenge lies in fulfilling these commitments amidst current practical constraints.”
The Future of Sustainable Finance
Sam Dodd, Senior Manager of Fixed Income at LSE, highlighted the ongoing refinement of sustainability strategies by companies and investors alike. He remarked, “Both parties are concentrating on fostering long-term value by managing sustainability-related risks and opportunities that can be financially quantified. As these strategies progress, improved sustainability reporting and transparency will facilitate better engagement with investors.”
For more insights on sustainable finance and ESG strategies, explore our related articles on sustainability reporting and investor relations.
