Broadly speaking, environmental, social, and governance (ESG) principles are still important to many companies. However, various macroeconomic headwinds are diverting corporations’ attention to other issues.
That’s not to the liking of ESG-enthusiastic investors, but there are solutions. Those include ESG exchange traded funds, such as the Invesco ESG Nasdaq 100 ETF (QQMG) and the Invesco ESG NASDAQ Next Gen 100 ETF (QQJG).
During the temporary pause in the prioritization of ESG at the corporate level, QQJG and QQMG could be appealing to values-driven investors. As the names imply, these are dedicated strategies. As such, the ETFs are homes to companies that have long prioritized ESG. Many are even pioneers on that front.
That’s notable. Data points to the fact that executives at some companies are talking ESG talk, but not necessarily walking the walk.
Considering Survey Details
The most recent iteration of the Google Cloud Sustainability Survey queried nearly 1,500 executives in 16 countries, turning up some interesting results that pertinent to investors considering ETFs such as QQJG and QQMG.
“The inability to execute, pressured by fewer resources, threatens to compound previous risks, unless executives take the appropriate steps. These include greater accountability, better measurement and management, and well-defined leadership,” according to the survey.
In positive news, executives see long-term benefit in embracing ESG. Many acknowledge that some customers may be stickier, or commit more revenue, if they realize a company is prioritizing ESG.
“The vast majority (85%) of executives acknowledge customers are more likely to engage and do business with sustainable brands, but 78% are now forced to achieve sustainability results on less money than before,” noted the Google survey.
Not surprisingly, greenwashing was also a point of emphasis in the survey. A positive is that some of those polled believe greenwashing isn’t being committed on purpose. Moreover, the methodologies adhered by to by QQJG and QQMG limit greenwashing as many of the ETFs’ member firms have strong credentials and are “greenwashing avoiders.”
As noted above, another perk offered by QQJG and QQMG is that many of the companies residing in these ETFs long ago emphasized ESG, meaning they’re not struggling with related issues today.
“In addition to accurate data, achieving an organization’s sustainability goals requires strong internal teams and structure. The research shows that many executives are also grappling with complex behind-the-scenes logistics of who makes sustainability-related decisions within their company,” concluded Google.
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