1、Prioritizing ESG Is Not Optional AnymoreHow Successful Companies Leverage Dedicated ESG Capabilities To Transform Their BusinessA FORRESTER CONSULTING THOUGHT LEADERSHIP PAPER COMMISSIONED BY DUN&BRADSTREET,MAY 2022ABOUT FORRESTER CONSULTINGForrester Consulting provides independent and objective res

2、earch-based consulting to help leaders succeed in their organizations.Ranging in scope from a short strategy session to custom projects,Forresters Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges.For more information,visit

3、Research,Inc.All rights reserved.Unauthorized reproduction is strictly prohibited.Information is based on the best available resources.Opinions reflect judgment at the time and are subject to change.Forrester,Technographics,Forrester Wave,RoleView,TechRadar,and Total Economic Impact are trademarks o

4、f Forrester Research,Inc.All other trademarks are the property of their respective companies.E-53312Project Team:Lane Abernathy,Market Impact ConsultantEmily Stutzman,Market Impact Associate ConsultantContributing Research:Forresters Infrastructure&Operations and Security&Risk research groupsTable o

5、f Contents3 Executive Summary4 Key Findings5 ESG Is Quickly Becoming A Top Priority11 Insufficient ESG Data And Immature Internal Practices Lead To Higher Risk18 Effective ESG Strategies Generate Transformational Benefits25 Key Recommendations27 AppendixPRIORITIZING ESG ISNT OPTIONAL ANYMORE2Executi

6、ve SummaryEvery business stakeholder customers,employees,investors,communities,partners,and suppliers is turning up the heat on the management,measurement,and performance of environmental,social,and governance(ESG)data and demanding more transparency,quality,and progress.As leaders adapt to the rapi

7、d evolution of these expectations,its becoming clear to many that ESG represents more than a way to avoid penalties and risk;it represents a mechanism for innovation,competitive advantage,and business value.But firms face many challenges when collecting,analyzing,applying,and reporting on ESG data a

8、nd performance;some of this data isnt being collected at all and when it is it may be with any number of different systems or teams.And both internal and external stakeholders may resist acting on the data for any number of reasons.Despite these challenges,companies committed to improving their ESG

9、data analytics practices have seen remarkable business results.They have experienced more resilient supply chains,reduced costs,and new business opportunities.These benefits show that mature ESG strategies arent just good for the environment,but good for business,too.In March 2022,Dun&Bradstreet com

10、missioned Forrester Consulting to evaluate the current state of ESG data and analytics and the benefits of mature ESG strategies.To explore this topic,Forrester conducted an online survey of 268 decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in

11、the US,Canada,and the UK.We found that the benefits of investing in ESG go well beyond avoiding fines for not complying with regulations and is a growing force driving profits through innovation and improved risk management.PRIORITIZING ESG ISNT OPTIONAL ANYMORE3Key FindingsFailing to meet ESG goals

12、 exposes firms to increased risks.The most common consequence companies face from not achieving ESG goals is increased levels of operational and financial risks.The more companies and their supply chains struggle to meet ESG goals,the more risk theyre exposed to.Insufficient ESG data is the most sig

13、nificant challenge for firms.If firms cant measure data,then they cant manage it.Without enough accurate,up-to-date,and transparent data,firms struggle to achieve their ESG goals due to varying degrees of lack of trust.Immature internal ESG data management holds firms back.Most firms are still using

14、 generic office technology,such as spreadsheets and email,to collect,analyze,apply,and report ESG data.These immature data management practices severely limit their ability to derive meaningful insights at scale.Firms that invest in automated,advanced ESG data analytics reap well-earned rewards.Inve

15、sting in ESG yields transformational benefits.Not only does attention to ESG performance lead to reductions in supply chain,operational,and reputational risks,it also leads to process efficiencies,product and service innovation,attractive financing opportunities,and new partnerships.PRIORITIZING ESG

16、 ISNT OPTIONAL ANYMORE4Environmental,social,and governance(ESG)data and its management has rapidly become a front-and-center global business concern.As business leaders come to recognize that the benefits of effective ESG strategies go well beyond compliance,companies that invest in maturing their E

17、SG data and analytics practices stand to differentiate themselves in a changing business landscape.In surveying 268 ESG decision-makers at global enterprises in the US,Canada,and the UK,we found that:ESG data is a critical asset.As companies face new ESG-related reporting and disclosure rules couple

18、d with growing pressure from investors,employees,customers,and partners,high-quality ESG data is an increasingly important asset.Only 20%of respondents said that using ESG data was very important to their company three years ago;44%said its very important today.Astoundingly,90%said they expect it to

19、 be very important to their company three years from now(see Figure 1).Thats a 4.5x increase within six years.Clearly,these decision-makers see a rising number of business contexts where ESG data will play a critical role.ESG Is Quickly Becoming A Top PriorityFigure 1“How important is using environm

20、ental,social,and governance(ESG)data to your organization today?How important was it three years ago?How important do you expect it to be in three years?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,an

21、d the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Somewhat importantImportantVery importantThree years ago36%40%20%Today2%54%44%Three years from now1%10%90%PRIORITIZING ESG ISNT OPTIONAL ANYMORE5 Supply chain teams are turning to ESG to incre

22、ase resilience.As global supply chains face unprecedented disruptions,bolstering resilience has never been more important.To that end,79%of respondents companies use ESG data to create more resilient value chains,for example,by avoiding suppliers with unsustainable practices(see Figure 2).In fact,af

23、ter compliance,creating a more resilient value chain was the second most important ESG goal in our survey.Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UK Note:Total percentages may not equal se

24、parate values due to rounding.Source:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Figure 2“Thinking about your companys ESG strategy,how important are the following goals?”Very importantImportantCreating differentiated offerings37%69%32%Improving corpo

25、rate reputation41%77%37%Mitigating ESG-related operational risk and disruption41%75%34%Responding to pressure from customers43%78%35%Mitigating ESG-related investment risk39%76%37%Responding to pressure from employees46%78%32%Creating a more resilient value chain42%79%37%Responding to pressure from

26、investors42%76%34%Mitigating ESG-related corporate strategy risk42%79%37%Complying with regulations40%80%40%TOTALPRIORITIZING ESG ISNT OPTIONAL ANYMORE6 Companies are relying on ESG data to mitigate risks across the business.Beyond the supply chain,business leaders use ESG to understand and manage d

27、iverse risks.Looking internally,four in five respondents said their companies use ESG data to mitigate ESG-related corporate strategy risks,such as blind spots due to a lack of diversity among leaders.ESG mitigates ESG-related operational risks and disruption for 75%of respondents firms and helps ke

28、ep businesses running.But it doesnt stop there.Seventy-six percent of respondents reported that ESG data is an important tool to mitigate their companies ESG-related investment risks.ESG data bolsters innovation.Though creating differentiated offerings was the least-cited priority,over two-thirds of

29、 respondents(69%)still reported it is an important or very important goal for their company.This order of priorities is in line with the relative immaturity of many ESG strategies and is to be expected.But we must note that such a strong emphasis,even if its at the bottom of the list,reflects that m

30、any companies recognize the opportunity to create value by taking a forward-looking approach and embedding ESG performance in product design.TODAYS ESG GOAL-SETTING SUGGESTS ROOM FOR PROGRESSIf sustainability leaders are winning acceptance for ESGs importance within the company,they must now ramp up

31、 their work across the organization to establish ESG-related targets and collaborate with the right teams to hit them.Through this study,we found that:Sustainability starts with compliance.Regulatory requirements for compliance reporting will never go away,but its only the beginning of the ESG journ

32、ey.Forrester has a five-stage sustainability maturity model charting the course from simple compliance to a fully mature,future-generation-safe state(see Figure 3).1 We found that,based on the company goals respondents cited,the market is broadly in its early and middle stages of maturity.Respondent

33、s ranked“compliance”as the most important priority and“creating differentiated offerings”at the bottom of the list.When ESG decision-makers can understand where their companies fall in terms of maturity,they can more effectively prioritize investment and develop more robust ESG strategies.PRIORITIZI

34、NG ESG ISNT OPTIONAL ANYMORE7Figure 3Sustainability Maturity Starts With Compliance And Ends At Future-Generation-SafeSource:“Guide Your Sustainability Program With The Forrester Sustainability Maturity Model,”Forrester Research,Inc.,October 27,2021.Companies are dedicating resources to ESG but have

35、 a lot of work to do.When asked how much progress their firms have made on each of their ESG-related goals,nearly all respondents(99%)said their firms have committed resources and are implementing their plan for at least one ESG goal(see Figure 4).But looking broadly at progress,we see that companie

36、s are significantly less likely to have demonstrated results.of respondents expect ESG data to be very important to their company by 2025.90%ComplianceCommitment and roadmapOperational excellenceDisruptive innovationFuture-generation-safePRIORITIZING ESG ISNT OPTIONAL ANYMORE8Base:Variable ESG perfo

37、rmance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Figure 4How much progress has your organization made on each of

38、these goals?We have an established process to measure these goals using ESG data with demonstrated results.We have committed resources and are implementing our plan.We have developed a plan but not yet implemented it.Complying withregulation42%39%14%38%40%17%Responding topressure fromcustomersRespon

39、ding topressure frominvestors35%46%15%34%39%22%Creatingdifferentiatedofferings36%43%17%Creating a moreresilient value chain33%53%10%Mitigating ESG-relatedinvestment riskMitigating ESG-related operational risk and disruption42%40%15%Improvingcorporatereputation37%47%14%Mitigating ESG-related corporat

40、estrategy risk33%46%17%35%46%15%Responding to pressure fromemployeesPRIORITIZING ESG ISNT OPTIONAL ANYMORE9Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted b

41、y Forrester Consulting on behalf of Dun&Bradstreet,March 2022Figure 5“Which of the following groups of people in your organization are involved with leading the adoption of ESG goals?”(Select all that apply.)Adopting ESG goals should be a group effort.Implementing a successful ESG strategy is a daun

42、ting initiative for any company and requires concerted effort across departments.We found that sustainability teams are the most important partners leading the adoption of ESG goals(see Figure 5).We also found that supply chain teams play an important role and are leading adoption in nearly half of

43、respondents companies(46%).To ensure the success of their ESG strategies,companies need to find ways to align departments on common goals and increase visibility of ESG across the organization.Then,they need to communicate ESG progress to customers,employees,supplies,and other partners.Sustainabilit

44、y team(e.g.,chief sustainability officer,chief environmental officer,etc.)71%Legal/regulatory/compliance team53%C-level executives51%Supply chain team46%Investor relations team37%Procurement team34%PRIORITIZING ESG ISNT OPTIONAL ANYMORE10Insufficient ESG Data And Immature Internal Practices Lead To

45、Higher RiskPressure to improve ESG performance is not a passing fad.Companies focused on sustainability outperformed their peers,even during the COVID-19 pandemic.2 But still,firms face many significant challenges meeting their ESG goals,and those challenges can impact bottom lines.We found that:Fai

46、ling to meet ESG goals exposes firms to higher operational and financial risks.Eighty-one percent of respondents told us their firms have experienced negative consequences by failing to meet their ESG goals.The two most common consequences of failing to meet ESG goals were increased operational risk

47、 and increased financial risk(see Figure 6).As the forces of geopolitics and global climate change impact the value chain and means of production,firms must bolster their bottom line and proactively leverage ESG data to strengthen their resilience against disruptive events.Figure 6“Which of the foll

48、owing effects,if any,has your organization experienced because of the challenges meeting ESG goals?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted by Forre

49、ster Consulting on behalf of Dun&Bradstreet,March 2022Increased operational risk43%Increased financial risk38%Damage to reputation30%Loss of revenue28%Loss of employees24%Financial penalties29%Loss of market position27%We have not experienced negative effects from challenges meeting ESG goals.19%PRI

50、ORITIZING ESG ISNT OPTIONAL ANYMORE11 A lack of resources undermines ESG impact.Collecting and analyzing ESG data is hard.Two-thirds of respondents agreed this means their firms struggle to quantify the impact of their current progress.And 63%agreed their companies are unable to measure the long-ter

51、m impact of their ESG goals.We all know that if a company cant measure data,it cant manage it.Forty-seven percent of respondents said their firms would disregard ESG data when they lack the resources to effectively analyze it.And,when their companies lack confidence in the data,nearly half of respon

52、dents said they would ignore ESG data if it conflicts with business goals,such as hitting a revenue target(see Figure 7).Figure 7“When,if at all,would your organization choose to disregard or ignore ESG data?”(Select all that apply.)Base:268 ESG performance decision-makers in compliance,sustainabili

53、ty,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022When ESG data conflicts with expected results 49%When we lack appropriate resources to effectively analyze ESG da

54、ta47%When we have insufficient data35%When time-to-delivery is more important32%We never disregard or ignore ESG data.13%When compliance is only voluntary32%When we do not trust the data26%PRIORITIZING ESG ISNT OPTIONAL ANYMORE12 Companies want to invest more in ESG data analytics,but specific chall

55、enges are preventing it.Nearly all respondents(89%)said their firms are holding back investment in their ESG capabilities for specific reasons.Unsurprisingly,the top two investment hurdles are immature internal data practices and a lack of trust in available ESG data to make decisions(see Figure 8).

56、Firms must improve their internal data practices and find ways to bring more integrity to their ESG data so they can be more comfortable using it to make decisions.Figure 8“What prevents your organization from investing more in ESG data analytics?”Base:268 ESG performance decision-makers in complian

57、ce,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Immature internal data management practices40%Lack of trust in ESG data to make decisions38%Prohib

58、itively high cost32%Unclear mandatory regulations29%Unclear voluntary standards26%Not seen as a competitive advantage23%Lack of regulations requiring it31%Lack of C-suite support28%Nothing prevents us from investing more11%PRIORITIZING ESG ISNT OPTIONAL ANYMORE13COMPANIES STRUGGLE TO ACQUIRE SUFFICI

59、ENT ESG DATAAccording to four out of five respondents,a successful ESG strategy requires effective data collection.But the most significant ESG-related challenges firms face are not having enough data(47%),the inability to validate and trust data(46%),and ESG data that is inconsistent or of poor qua

60、lity(46%)(see Figure 9).Without access to enough data that is trusted,accurate,and consistent,firms will continue to struggle making ESG-related decisions.To move beyond simple compliance and maximize the value their ESG strategies create,firms must find ways to acquire ESG data that they can trust

61、and acquire enough of it to effectively measure,monitor,and report against.ESG data on privately held companies remains elusive.ESG strategies are incomplete without data on third parties,including privately held businesses.But due to the lack of disclosure requirements,ESG data for private companie

62、s is hard to acquire.Forty-two percent of respondents told us that an inability to acquire ESG data on privately held businesses prevents their firms from meeting ESG goals.POOR INTERNAL ESG DATA MANAGEMENT CREATES PROFOUND PROBLEMS Effective internal ESG-related data management is a mission-critica

63、l pillar of success,and a top-five challenge for nearly half of respondents firms.Even in an ideal scenario of unfettered access to ESG data,companies will inevitably struggle to meet their ESG goals and thus face higher risk if they dont have the right data management processes and technology.Diggi

64、ng deeper,we found that companies struggle to integrate ESG data with their existing systems(43%),which doesnt just cause problems when trying to make data-driven decisions,but also hinders them in the critical step of reporting ESG progress to stakeholders and regulators.Additionally,37%said disagg

65、regated ESG sources prevent their companies from achieving their ESG goals.PRIORITIZING ESG ISNT OPTIONAL ANYMORE14Figure 9“What are the top five challenges preventing your organization from meeting its ESG goals?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,fina

66、nce,and risk roles at global enterprises in the US,Canada,and the UKNote:Total percentages may not equal separate values due to rounding.Source:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Rank 1Rank 3Rank 2Rank 4Rank 5Insufficient quantity of ESG data

67、 on businesses we need to assess7%10%12%8%10%47%Difficulty integrating ESG data with our existing systems9%10%9%6%9%43%Lack of quality/consistency of available ESG data12%9%6%8%10%46%Unclear ESG standards12%7%8%6%6%39%Disaggregated ESG data sources6%9%8%9%6%37%Lack of transparency/trust in ESG data

68、we acquire6%9%10%10%10%46%Poor/immature internal ESG data management practices11%6%9%10%9%46%Lack of investment8%8%8%8%7%39%Lack of C-suite support6%8%5%7%8%34%Conflicting ESG standards6%6%10%10%8%39%TOTALInability to acquire ESG data on privately held companies9%10%6%10%9%42%PRIORITIZING ESG ISNT O

69、PTIONAL ANYMORE15 Spreadsheets arent enough.Inadequate technology that many firms use to manage,analyze,and report ESG data largely drive ESG-related problems.When asked how their companies collect and analyze data related to ESG today,seven out of ten respondents said their companies rely on generi

70、c office technology,such as spreadsheets and email(see Figure 10).With such low levels of automation and verification,many businesses will lose time,and sleep,from their ESG data collection process;further,teammates from the financial and audit parts of organizations wont trust the rigor of the proc

71、ess and may challenge the reporting.Figure 10“Which of the following options best describes how your organization collects and analyzes data related to ESG today?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,

72、Canada,and the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022ESG data is collected and analyzed across the organization using generic office technology.19%ESG data is collected and analyzed across the organization through a dedicated and compre

73、hensive ESG data analytics solution.31%ESG data is collected and analyzed across the organization both with generic office technology and through some automation.35%ESG data is collected and analyzed only within specific pockets or units of the organization.15%PRIORITIZING ESG ISNT OPTIONAL ANYMORE1

74、6 Standards and frameworks are a double-edged sword.More than half of respondents said their firms use at least four different ESG standards or frameworks(see Figure 11).This means that,while 85%of respondents agreed that using these standards helps their firms meet ESG goals,81%also agreed their co

75、mpanies struggle to transform ESG data from one framework to another.ESG leaders need technology in place so they can leverage these frameworks to their benefit without getting bogged down translating metrics and metadata from one standard to another.Figure 11“Which sustainability or ESG standards/f

76、rameworks,if any,does your organization use?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022G

77、lobal Reporting Initiative(GRI)International Integrated Reporting Council(IIRC)39%32%United Nations Sustainable Development Goals(UN SDG)United Nations Principles For Responsible Investment(UN PRI)Task Force On Climate-Related Financial Disclosures(TCFD)51%51%41%Sustainability Accounting Standards B

78、oard(SASB)Sustainable Financial Disclosure Regulation(SFDR)60%59%PRIORITIZING ESG ISNT OPTIONAL ANYMORE17Effective ESG Strategies Generate Transformational BenefitsDespite the many challenges,firms have still seen transformational benefits from their ESG strategies.These benefits led to a diverse co

79、llection of business outcomes across organizations.At the core of these benefits is the improved ESG data transparency that 79%of respondents reported (see Figure 12).We found that:Improved ESG performance drives profit.In a testament to how important ESG data is,four out of five respondents told us

80、 their companys current ESG strategy has created a significant or transformational increase in revenue.Further,75%said the ESG-related reduction in costs was significant or transformational,not incremental.For example,businesses may find that ESG-related supply chain improvements lower the cost of p

81、rocurement for many years to come.ESG-driven product innovation also opens up new products or avenues for business partnership.ESG data opens growth and investment opportunities.Good ESG strategy is good business strategy.ESG-related insights allowed respondents companies to identify growth opportun

82、ities earlier(79%)and improve the performance of their investment portfolio(72%).Organizations that bring their value chain along on their ESG journey are likely to see benefits.When firms execute a successful ESG strategy,they get deeper engagement with their customers,suppliers,and partners.We fou

83、nd that three out of four respondents have seen transformational or significant benefits from their ESG strategies in their supply chain resilience and value chain engagement.And this added engagement drove customer acquisition for 75%of respondents firms.of respondents firms would invest more in ES

84、G data analytics,but specific challenges are preventing it.89%PRIORITIZING ESG ISNT OPTIONAL ANYMORE18Figure 12“To what extent has your organization experienced the following benefits from its current ESG strategy?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,fin

85、ance,and risk roles at global enterprises in the US,Canada,and the UKNote:Total percentages may not equal separate values due to rounding.Source:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Transformational benefitSignificant benefitTOTALImproved corpo

86、rate reputation80%35%45%Earlier ability to identify growth opportunities32%47%79%Improved regulatory compliance32%47%79%Deeper customer,supplier,and partner engagement38%41%79%Improved ESG transparency36%43%79%Better insight into potential risk,fraud,and compliance issues36%41%77%Increased revenue32

87、%45%78%More resilient supply chain37%40%76%Increased customer acquisition34%41%75%Reduced cost32%43%75%Improved investment portfolio performance28%44%72%PRIORITIZING ESG ISNT OPTIONAL ANYMORE19 Compliance never goes away.Companies will always have to demonstrate regulatory compliance,regardless of E

88、SG maturity.And,with the potential penalties for noncompliance,its a critical priority.Nearly four in five respondents said their companies ESG strategy has produced a significant to transformational improvement in their compliance.Respondents need a solution that allows them to better understand th

89、eir own companies and their supply chains.When asked about an ideal dedicated ESG data solution,decision-makers said the most important capability is effective self-assessment of their own company to find potential gaps in their ESG strategy(74%)(see Figure 13).And,looking outside themselves,68%of r

90、espondents need a solution that allows comparisons between third parties or suppliers individual ESG performance.Companies also need an ESG data solution that creates benchmarks with standardized metrics(72%),provides analysis and overview of their ESG-related investment portfolio data(68%),and prov

91、ides access to ESG data for privately held companies(67%).But they also need help automating ESG data to streamline reporting(71%).MATURE ESG STRATEGIES DRIVE SUCCESS ACROSS BUSINESSESTo help companies better prioritize their ESG investment,we developed a model for this study to understand the benef

92、its of more mature ESG strategies.In this study,Forrester defines maturity by a companys level of ability or skill in the four pillars of ESG strategies:collecting,analyzing,applying,and reporting ESG data and performance.Respondents companies were divided into one of three maturity groups.About 33%

93、were low maturity,about 33%were medium maturity,and about 33%were high maturity.Forrester found that high-maturity firms:PRIORITIZING ESG ISNT OPTIONAL ANYMORE20 Focus more on corporate strategy and reputation.High-maturity firms have become more effective at complying with regulations and focus mor

94、e of their resources on value-added benefits like mitigating corporate strategy risk and improving their reputation(see Figure 14).But more importantly,neither high-nor low-maturity firms prioritize the more mature goal of creating differentiated offerings,indicating the industry broadly speaking ha

95、s much work to do to arrive at mature ESG practices.But this immaturity also translates into opportunity for those willing to invest in their ESG performance.Lack access to data on privately held companies.For both high-and low-maturity firms,data quality is a problem;however,more mature firms top c

96、hallenge around meeting their ESG goals is not having enough access to data on private firms(see Figure 15).This missing puzzle piece is critical for companies that want to grow beyond a minimum viable ESG strategy to truly measure and manage their value chain,which will lead to reduced risk.Figure

97、13“Thinking about an ideal dedicated ESG data solution,how valuable do you believe each of the following capabilities would be for your organization?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and th

98、e UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Very valuableValuableTOTALAllows us to assess our own company to identify gaps in ESG strategy74%36%38%Creates benchmarks with standardized metrics31%41%72%Integrates with existing reporting syste

99、m via API31%41%72%Allows companies to submit additional information to us for our analysis29%43%72%Helps my organization automate ESG data to streamline reporting30%41%71%Allows comparison between third parties or suppliers individual ESG performance32%36%68%Provides analysis and overview of investm

100、ent portfolios ESG data28%40%68%Provides access to ESG data for privately held companies29%38%67%PRIORITIZING ESG ISNT OPTIONAL ANYMORE21Figure 14“Thinking about your companys ESG strategy,how important are the following goals?”Figure 15“What are the top five challenges preventing your organization

101、from meeting its ESG goals?”Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022Base:268 ESG perfo

102、rmance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted by Forrester Consulting on behalf of Dun&Bradstreet,March 2022HIGH MATURITYLOW MATURITYMitigating ESG-related corporate strate

103、gy riskResponding to pressure from customersCreating a more resilient value chainImproving corporate reputationComplying with regulationsMitigating ESG-related investment riskMitigating ESG-related operational risk and disruptionCreating differentiated offeringsResponding to pressure from investorsR

104、esponding to pressure from employeesComplying with regulationsCreating a more resilient value chainMitigating ESG-related investment riskResponding to pressure from customersMitigating ESG-related operational risk and disruptionResponding to pressure from investorsImproving corporate reputationCreat

105、ing differentiated offeringsMitigating ESG-related corporate strategy riskResponding to pressure from employeesHIGH MATURITYLOW MATURITYInability to acquire ESG data on privately held companiesLack of quality/consistency of available ESG dataPoor/immature internal ESG data management practicesUnclea

106、r ESG standardsDisaggregated ESG data sourcesLack of quality/consistency of available ESG dataLack of transparency/trust in ESG data we acquireLack of investmentInsufficient quantity of ESG data on businesses we need to assessPoor/immature internal ESG data management practicesPRIORITIZING ESG ISNT

107、OPTIONAL ANYMORE22MATURITY IS WORTH THE INVESTMENTThe benefits that high-maturity firms achieve by investing in their ESG data analytics strategies reverberate across their companies.The impact of more mature ESG strategies is impressive,and we dont have enough space to enumerate the stark differenc

108、es between high and low maturity,but some of the increased ROI of mature ESG strategies include:More resilient value chains.Bolstering supply chain resilience is critical to sustaining business operations,and 91%of high-maturity firms see more resilience in their supply chain from their ESG strategi

109、es(see Figure 16).But the benefits of high-maturity ESG strategies persist across the entire value chain,and 93%of respondents from high-maturity firms reported a deeper customer,supplier,and partner engagement from their ESG strategies.Figure 16“To what extent has your organization experienced the

110、following benefits from its current ESG strategy?”(Showing Transformational benefit and Significant benefit)Base:268 ESG performance decision-makers in compliance,sustainability,procurement,finance,and risk roles at global enterprises in the US,Canada,and the UKSource:A commissioned study conducted

111、by Forrester Consulting on behalf of Dun&Bradstreet,March 2022High maturityLow maturityReduced cost97%51%Improved ESG transparency96%60%Deeper customer,supplier,and partner engagement 93%55%Increased customer acquisition92%52%Increased revenue92%60%Improved corporate reputation92%64%More resilient s

112、upply chain91%55%Improved regulatory compliance 91%59%Improved investment portfolio performance90%51%Better insight into potential risk,fraud,and compliance issues90%60%Earlier ability to identity growth opportunitites91%64%PRIORITIZING ESG ISNT OPTIONAL ANYMORE23 Reduced costs.Not only did 97%of re

113、spondents from high-maturity firms report a significant or transformational benefit from reduced costs because of their ESG strategies,it was the benefit where high-and low-maturity firms differed the most.Increased customer acquisition.Compared to half of respondents from low-maturity firms,92%of h

114、igh-maturity firms saw a significant or transformational increase in customer acquisition due to their ESG strategies.This is no doubt driven by the fact that responding to pressure from customers is the second most important goal for high-maturity ESG strategies.Improved investment portfolio perfor

115、mance.Investment performance is subject to a wide variety of risks.But we found that high-maturity companies are 1.8 times more likely(90%versus 51%of low-maturity companies)to experience significant or transformational benefits from improved investment portfolio performance when leveraging ESG data

116、 to choose portfolio makeup.Increased revenue.Ninety-two percent of respondents from high-maturity firms reported a significant or transformational benefit from increased revenue on account of their ESG strategies,1.5 times that of low-maturity respondents.The reported benefits of a more mature ESG

117、strategy are remarkable.But notably,low-maturity firms still see significant improvements as well.Taking a step back,we found that even firms whose ESG strategies are in the early stages of maturity realize positive returns on investment across many metrics.This finding clearly indicates that ESG is

118、 not simply a mandatory burden,but an integral part of sound business strategies.PRIORITIZING ESG ISNT OPTIONAL ANYMORE24Key RecommendationsESG is having more and more impact in businesses,across all departments,from product to finance,marketing,procurement,and risk.The expectations of ESG transpare

119、ncy are also felt through each layer of supply chains,from investors considering loans to a business,and even new hires.Leaders working with ESG understand that this is not just data,but the key to tomorrows competitiveness and innovation.Forresters in-depth survey of 268 ESG decision-makers about t

120、heir ESG-related challenges and goals yielded several important recommendations:Understand your businesss actual ESG exposure.Compliance addresses regulators ESG concerns(which are increasing),but a broader perspective is required to capture the ESG expectations of other stakeholders.Materiality map

121、ping and assessing external and internal stakeholders ESG expectations helps businesses look beyond compliance to the real ESG risks and opportunities facing the business.Make ESG excellence part of everyones job.A sustainability or ESG lead working in isolation will not improve a companys performan

122、ce.Many boards have pushed ESG-related targets into executives performance reviews;ESG leaders have gone one step further and made these KPIs part of everyones success criteria across the business.This motivates the desired improvements,and pushes the organization to improve how it tracks ESG.Apply

123、the same rigor to ESG data that is dedicated to financial data.Regulators,investors,and business partners are,and will be,scrutinizing ESG data;in many organizations,auditors are getting involved to improve the rigor and hygiene.Businesses need to bring a higher degree of focus to ESG data managemen

124、t and reporting through dedicated improvement programs and partnering with IT and operations leaders.PRIORITIZING ESG ISNT OPTIONAL ANYMORE25Invest in ESG-related people,processes,and technologies.Achieving the benefits of ESG excellence depends on the right inputs to produce accurate and actionable

125、 ESG data.Dedicated managers,bespoke automation,and improved workflows all tee up the business to succeed with its ESG initiatives.Given the business value reflected in respondents answers to this survey,there is ample foundation for a business case to support these investments.PRIORITIZING ESG ISNT

126、 OPTIONAL ANYMORE26In this study,Forrester conducted an online survey of 268 ESG performance decision-makers at organizations in the US,CA,and UK to evaluate environmental,social,and governance performance.Survey participants included decision-makers in compliance,sustainability,procurement,finance,

127、and risk roles.Questions provided to the participants asked about the current state,challenges,benefits,and maturity of ESG performance.Respondents were offered a small incentive as a thank you for time spent on the survey.The study began in February 2022 and was completed in March 2022.Appendix A:M

128、ethodologyAppendix B:DemographicsAppendixCOMPANY SIZE500 to 999 employees25%1,000 to 4,999 employees27%5,000 to 19,999 employees24%20,000 or more employees24%RESPONDENT LEVELDirector54%Vice president22%Manager15%C-level executive9%DEPARTMENTSustainability44%Risk and compliance37%Purchasing and opera

129、tions12%Finance and accounting8%RESPONSIBILITYI am the final decision-maker for my organizations ESG strategy.23%I am part of a team making decisions for my organizations ESG strategy.76%COUNTRYCanada21%United Kingdom47%United States32%COMPANY REVENUEMore than$5B26%$1B to$5B25%$500M to$999M22%$250M

130、to$499M26%TOP 8 INDUSTRIESManufacturing18%Automotive14%Energy/utilities11%Real estate6%Pharmaceuticals/medical5%Banking/insurance/leasing5%Media4%Business retail4%Note:Percentages may not total 100 because of rounding.Appendix D:Endnotes1 Source:“Guide Your Sustainability Program With The Forrester Sustainability Maturity Model,”Forrester Research,Inc.,October 27,2021.2 Source:“Factors Driving The ROI Of Sustainability,”Forrester Research,Inc.,April 22,2021.PRIORITIZING ESG ISNT OPTIONAL ANYMORE27