The results of the Cyprus ESG Barometer 2023 (Cyprus ESG Barometer 2023) were announced at a press conference at the University of Nicosia
The Cyprus ESG Barometer 2023 recorded, for the first time in Cyprus, the perceptions of three different populations (general public, employees and management) for the sustainability programs.
Just 31% of the general public are positive about companies' performance on Environmental, Social and Corporate Governance (ESG), 26% are ambivalent and 43% are negative, according to the Cyprus ESG Barometer 2023 (Cyprus ESG Barometer 2023), which was implemented by the Corporate Sustainability and Responsibility Center (CSRC) of the University of Nicosia and IMR. It is an application in Cyprus of the ESG Barometer survey, which was developed by the Alba Graduate Business School, The American College of Greece, with the support of CSR Hellas, and was implemented in Greece within the framework of the Theodore Papalexopoulos Chair in Sustainability at Alba Graduate Business School.
The aim of the Cyprus ESG Barometer 2023 was twofold: on the one hand, to record and compare, for the first time in Cyprus, the perceptions of three different populations (general public, employees and management executives) regarding ESG criteria and Sustainability, and on the one hand to provide businesses with reliable data on which to base their future dialogue with their stakeholders.
About the Cyprus ESG Barometer
The Cyprus ESG Barometer 2023 is an innovative and important indicator that captures the views of employees, society and business leaders regarding corporate actions in Environment, Society and Governance (ESG)/Corporate Social Responsibility (CSR) & Sustainability. This research represents the first of its kind in Cyprus and highlights the importance of corporate responsibility and sustainability for businesses. The Cyprus ESG Barometer was implemented with the support of the Federation of Employers and Industrialists (OEB) and CSR Cyprus.
Only 4 out of 10 executives know that their company has a sustainability/ESG budget.
Data collection took place between March and July 2023 through three different questionnaires, each tailored to the characteristics of each of the different target groups. A total of 345 responses were collected from employees in 30+ companies and organizations, 67 responses from members of the companies' top management teams, and 700 responses from the general public. All questionnaires were based on current published academic scales and valid psychometric measures.
Key Findings
– There is a perceived ESG performance gap between external and internal stakeholders. The general public appears to be more critical than internal stakeholders (management and employees). In summary: 31% of the general public are positive about the company's ESG performance, 26% are ambivalent and 43% are negative.
– A large majority of the public state that they are willing to pay a price premium for products/services from companies that implement sustainability and ESG actions, however they do not appear ready to sacrifice salary to work for a company that implements more ESG and Sustainability actions.
– The general public attributes business engagement with ESG criteria more to profits and competition, and less to moral obligation.
– Management executives attribute engagement with ESG more about moral obligation and less about business motives (eg profit)
– Employees rate their leaders as relatively humble, although there seems to be considerable room for improvement. We believe that humble leadership is a key driver and facilitator of ESG performance and a key ESG indicator.
– Management executives approach ESG criteria more as an opportunity than a threat (risk management) and tend towards the principle of “do-more-good” (vs. “do-less-harm”). They also believe that ESG offers more benefits than costs to the company and will be able to increase their company's competitiveness.
– The main challenges recognized by management are: a) the lack of a workforce trained in ESG issues, b) support from the board of directors, and c) support from business executives. Managements appear to be less concerned about: a) financing the transition to sustainable development, b) adapting the supply chain and, c) customer demand for ESG and sustainability issues. The research suggests that much more needs to be done in terms of: a) linking pay to ESG performance and b) offering ESG training programs to employees. Executives are not well informed about ESG-related regulations.
-One in three executives surveyed report that the company has a CSR/ESG unit in its organizational structure. Only 4 out of 10 executives know that their business has a sustainability/ESG budget.
Education and training
Based on the findings of the research, it is proposed to promote ESG education and training programs for employees and managers, to communicate the ESG performance of companies to the general public, to encourage transparency in the application of ESG criteria, to integrate ESG criteria into corporate strategy of businesses and the support of ESG initiatives by Boards of Directors and Management, so that in the coming years the situation in Cyprus regarding perceptions in relation to ESG criteria will improve.
The results of the Cyprus ESG Barometer for 2023 (ESG Barometer 2023) were presented by Dr. Alexandros Antonaras, Associate Professor of the School of Management of the University of Nicosia, at a press conference held on Tuesday, December 19, 2023, in the presence of the Minister of Labor and Social Insurance, Mr. Yiannis Panagiotou, the Assoc. General Director of the Federation of Employers and Industrialists (OEB) Mr. Costas Christofidis, the President of CSR Cyprus Mr. Marinos Voukis and representatives of companies and organizations.
In his greeting, the Minister of Labor and Social Insurance thanked the contributors of the Barometer and pointed out that “the states that will succeed in the coming decades to progress and achieve important achievements for their citizens will be those that will not have hesitated to prioritize correctly priorities for the future. Within them, the green transition must be clearly prioritized first, in the way we must perceive the sustainability of our neighbourhoods, our cities and villages, our countries and our planet”.
Welcoming the press conference, the Deputy Director General of OEB, Mr. Costas Christofidis said: “The goal of the Barometer – that is, the strengthening of the dialogue with the interested parties of the companies – perfectly coincides with our own priorities. We seek, in every possible way, through dialogue and other targeted actions, to send the message to the business world of our country that good governance, care for the environmental and social footprint as well as undertaking social responsibility actions are rewarding and create positive impact”. He also thanked the Center for Business Sustainability and Responsibility of the University of Nicosia and IMR for their initiative and assured that OEB will continue to promote and applaud the importance of sustainability for work, businesses and society as a whole and that it will be next to every corresponding initiative that contributes in this direction.
In turn, the President of CSR Cyprus, Mr. Marinos Voukis, emphasized that the existence of a strong ESG accountability policy protects and guarantees the business sustainability and can create new opportunities, reducing potential risks. ESG accountability ensures responsible transparency for every stakeholder, in other words it is not limited to shareholders, but touches and concerns every member of the company's value chain.
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