- More than half of East Anglia businesses report that they have declined to work with clients because of their ESG performance, above the national average of 43%
- 37% of East Anglia business leaders are prioritising the racial equality, diversity and inclusion (ED&I) of their workforce and executive team as part of their ESG agenda
- Nearly a quarter are prioritising environmental commitments
Business leaders in East Anglia are voting with their feet and declining to work with clients because of their ESG credentials, according to new research from accountancy and business advisory firm, BDO.
BDO’s ‘Rethinking the economy’ survey found that 53% of businesses in the region are declining or discontinuing to work with clients or customers as a direct result of their ESG performance.
When asked which factors business leaders considered most important when selecting or renewing contracts with customers or suppliers, 27% selected ED&I performance.
Geographical proximity was also a key consideration. Personal relationships ranked as the third most important, which was cited by 23% of companies.
In regard to diversity and inclusion, improving social mobility and socio-economic diversity is a key priority for one in five businesses. More than a third are focusing on diversity and inclusion relating to ethnicity, with 33% on gender diversity and inclusion. This compares to nearly a quarter that are prioritising environmental commitments as part of their ESG agenda.
Peter Harrup, partner and head of BDO in East Anglia, commented: “Despite extremely challenging trading conditions, where business leaders are battling with rising costs, the after-effects of a pandemic, and the geopolitical uncertainty driven by Russia’s invasion of Ukraine, companies in the region are clearly voting with their feet when it comes to weighing up commercial relationships and the ESG agenda.
“With almost half of businesses revealing that they are already declining to work with clients due to poor ESG performance, all businesses will need to be prioritising ESG no matter what their size or sector.”
He added: “It is positive to see diversity and inclusion around social mobility and ethnicity within leadership teams and workforces featuring highly amongst businesses. Creating more equal opportunity across the board is vital for the future prosperity of the region and businesses have an important role to play in addressing the issue of social mobility in East Anglia.”