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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION
The Morningstar Sustainalytics 
Corporate ESG Survey Report 
2022
CSR and Sustainability in Transition

Acknowledgments
Copyright ©2022 Morningstar Sustainalytics. All rights reserved.
The information, methodologies, data, charts, and opinions contained or reflected herein are proprietary of Sustainalytics and/or third parties, intended for internal, 
non-commercial use, and may not be copied, distributed or used in any way, including via citation, unless otherwise explicitly agreed in writing. They are provided for 
informational purposes only and (1) do not constitute investment advice; (2) cannot be interpreted as an offer or indication to buy or sell securities, to select a project or 
make any kind of business transactions; (3) do not represent an assessment of the issuer’s economic performance, financial obligations nor of its creditworthiness; (4) 
are not a substitute for a professional advice; (5) past performance is no guarantee of future results.
These are based on information made available by third parties, subject to continuous change and therefore are not warranted as to their merchantability, completeness, 
accuracy, or fitness for a particular purpose. The information and data are provided “as is” and reflect Sustainalytics’ opinion at the date of their elaboration and 
publication. Sustainalytics nor any of its third-party suppliers accept any liability for damage arising from the use of the information, data or opinions contained herein, in 
any manner whatsoever, except where explicitly required by law. Any reference to third party names is for appropriate acknowledgement of their ownership and does not 
constitute a sponsorship or endorsement by such owner. A list of our third-party data providers and their corresponding terms of use are available on our website. For 
more information visit: http://www.sustainalytics.com/legal-disclaimers.
Insofar as applicable, researched companies referred herein may have a relationship with different Sustainalytics’ business units. Sustainalytics has put in place 
adequate measures to safeguard the objectivity and independence of its opinions. For more information, contact compliance@sustainalytics.com.
Different disclaimers may be applicable to specific products or services.
We would like to thank the following individuals for their contributions to this survey report:
•	 Advaita Belgaonkar, Associate Director, Marketing Analytics, Morningstar Sustainalytics
•	 Eric Fernald, ESG Research Director, Morningstar Sustainalytics
•	 Wilco van Heteren, Senior Vice President, ESG Research, Morningstar Sustainalytics
•	 Gabriel Presler, Global Head of Enterprise Sustainability, Morningstar
•	 Shilpi Singh, Corporate Solutions Director, Morningstar Sustainalytics
THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

Contents
Report Highlights
4
Foreword
5
Introduction
6
Methodology, Firmographics and Demographics
7
The State of ESG Within CSR and Sustainability
8
ESG Motivations
12
ESG Strategy
15
ESG Challenges
17
ESG Priorities
20
ESG Reporting and Service Providers
22
ESG Ratings
25
Conclusion
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

Responsibility for environmental, social, and corporate governance (ESG) programs commonly belongs to 
corporate social responsibility (CSR) professionals, who are tasked with delivering on a range of related goals that 
have taken on steadily greater importance for many firms. The Morningstar Sustainalytics Corporate ESG Survey 
Report 2022 presents current and emerging challenges facing CSR and sustainability professionals, insights about 
peer practices, and indications about the future directions of corporate ESG programs.  
Report Highlights
Managing ESG Activities
Almost nine in ten CSR and sustainability professionals (89%) manage 50% or more of the ESG activities at 
their companies, including: reporting and disclosure (95% very involved/regularly involved), target setting and 
measurement (95%), program planning and execution (94%), and ESG ratings or scores (90%).
Stages of ESG Maturity
Among survey respondents, 64% of their firms have a formal ESG strategy; 78% have identified strategic ESG 
issues; and 61% have set specific goals and/or key performance indicators (KPIs).
Dealing With Challenges
The challenges with the most severe impact for CSR and sustainability professionals include: budget 
constraints (35%); lack of human resources (34%); the measurement, reporting and disclosure of outcomes 
(33%); goal and target setting (32%); and meeting regulations or standards (28%). 
Addressing the Challenges 
The most common resources CSR and sustainability professionals use to meet ESG challenges are ESG 
consultants (61%); external ESG standards and/or guidance (58%); and internal hires (46%). Less than one in 
five (17%) reported the use of sustainable financing to meet their ESG challenges.
Environment Is Top Priority 
Survey respondents report that when it comes to ESG, their organizations rank by order of importance 
environmental issues (53%) as highest, followed by corporate governance (25%) and social issues (22%).
Support for Measurement and Reporting 
Most respondents work with external ESG service providers to manage measurement or reporting. Those that 
have not hired outside advisors report that they don’t see the need or value (29%) or haven’t done so due to 
costs (22%).
ESG Ratings and Scores 
Nearly two-thirds of CSR and sustainability professionals (61%) say their company has an ESG risk rating or 
score. Firms are mainly using their scores for annual CSR/ESG reporting (28%) and investor relations (27%).
Key Findings
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

Foreword
The ESG landscape has been evolving rapidly over the past 
years. This report reflects this evolution. The findings — from 
an increased population of corporate staff active in ESG, to 
drivers for increased ESG-related activities, to the greater focus 
on environmental topics versus governance and social issues, 
and the use of ESG in corporate practices — are consistent 
with what Sustainalytics’ research teams encounter when 
doing ESG research, generating ESG ratings, and discussing 
companies’ inputs into processes. 
What our research teams are picking up from the corporate 
market is sustained by the facts and statistics in this report. 
The message is clear: the relevance of ESG for corporations 
and their stakeholders will only increase. ESG research and 
ratings can support those companies, investors, and other 
stakeholders in decision-making around ESG issues, while 
acknowledging that ESG has become and will continue to  
be of strategic relevance for all the players in markets  
and economies.
The field of corporate sustainability is evolving quickly. 
Expectations for companies are changing; the conditions for 
business success have shifted; and there has never been a 
brighter spotlight on the work of sustainability leaders.
This report from our colleagues at Sustainalytics indicates 
that the domain and influence of sustainability teams is 
changing quickly, too. What was once viewed as a compliance-
oriented or brand-driven investment is now seen as an integral 
component of future-focused, data-driven corporate strategy. 
And as regulatory scrutiny increases and international ESG 
reporting standards align, the data makes all the difference. 
Leaders in this space are increasingly able to link progress 
in core sustainability principles to underlying ESG data, to 
compare companies and industries more effectively, and to 
arm their executive leadership with coherent, consistent and 
transparent metrics to understand a company’s exposure 
and positioning to significant industry, market, social, and 
environmental challenges.
Of course, challenges remain. Sustainability teams are often 
small and, as this report reflects, they are tasked with owning 
almost all aspects of these critical workstreams. The field is 
new and requires both creative energy and technical expertise. 
The moment is complicated and disentangling signal from 
noise takes nuanced technical and strategic skills.
We hope that sustainability leaders will find this report helpful 
in prioritizing shifting opportunities, challenges, and areas for 
acceleration and strategy planning.
WILCO VAN HETEREN
Senior Vice President, ESG Research
Morningstar Sustainalytics
GABRIEL PRESLER
Global Head of Enterprise Sustainability
Morningstar
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

While corporate social responsibility has played an important role in business for several decades, today the 
challenges facing CSR and sustainability professionals are evolving rapidly. Climate change, the global pandemic, 
rising stakeholder expectations, increased regulation, and expanding definitions of risk management among 
investors, are all key factors that are increasing the attention firms are paying to environmental, social, and 
governance issues.
With these shifts in public and corporate thinking about stakeholder capitalism, many of these professionals 
have become more focused on ESG issues that are relevant to their firms’ operations, which may fall outside the 
realm of traditional CSR and sustainability. They are taking on more responsibilities with respect to effectively 
implementing ESG strategies and managing reporting, disclosure, and regulatory compliance requirements. 
What’s more, increased expectations of ESG performance are no longer associated with specific activist groups or 
jurisdictions: stakeholders globally want businesses to measure, disclose, and act.
The Morningstar Sustainalytics Corporate ESG Survey Report 2022 reveals that CSR and sustainability professionals 
and their firms are stepping up to meet today’s challenges, presenting a picture of how business is managing ESG 
activities, and the impact on CSR departments. The results offer insights on the kinds of existing and emerging 
challenges these professionals face around the world, as well as their most important concerns about ESG.
Introducing the Morningstar Sustainalytics 
Corporate ESG Survey Report
THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION
THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION
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Methodology, Firmographics and Demographics
From June to August 2022, Morningstar Sustainalytics conducted a global survey of 556 participants who identified as corporate 
social responsibility or sustainability professionals. Respondents shared their views on a range of CSR and ESG topics, from 
current ESG reporting preparedness and challenges to planning and implementation. The respondents represent a cross-section of 
roles, company sizes, and industries, including financial services, technology, manufacturing, and the public sector.
Methodology
Firmographics
Smallest 
Small 
Medium 
Medium-Large 
Large 
Largest 
– <50 employees
– 50-499 employees
– 500-999 employees
– 1,000-9,999 employees
– 10,000-99,999 employees
– 100,000+ employees
What is the size of your company?
Is your company public or private?
Company Sizes
5%
10%
16%
52%
48%
8%
35%
26%
Demographics
C-Level (CEO, CFO, COO, CTO, etc.)
Vice President
Director
Manager
Individual contributor (no direct reports)
Americas
Asia-Pacific
Europe
Middle East and Africa
Which of the following best describes your role?
Region of work
6%
6%
11%
19%
30%
34%
21%
48%
25%
Female
Public
Male
Private
Prefer not to say
What is your gender?
54%
44%
2%
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

Insight From Our Experts
“As this report shows, the widespread evolution of ESG goes hand in hand with 
an increasing number of corporate professionals active in this field. This growth, 
together with the level of seniority of professionals operating in the ESG space within 
corporates, correlates with the increasing level and intensity of interactions between 
corporates and Sustainalytics’ ESG analysts, when discussing corporates’ input into 
the ESG ratings processes.”
WILCO VAN HETEREN
Senior Vice President, ESG Research
Morningstar Sustainalytics
The State of ESG Within CSR and Sustainability
The survey revealed that CSR and sustainability professionals bring significant breadth and depth of experience to 
their current roles and the field appears to be growing. At the same time, these roles are being rapidly redefined and 
expanded by the increased corporate focus on ESG programs, disclosure, and measurement.
Years of Experience Among CSR and Sustainability Professionals
Less than 1 year
1-2
3-5
6-10
11-20
More than 20 years
5%
7%
14%
29%
22%
22%
How many years of experience do you have in CSR or sustainability?
Approximately 29% respondents have three to five years of experience in the CSR and sustainability field, though slightly more 
than half (51%) have been in these roles for six or more years, and almost a third (29%) for more than 11 years. This suggests 
that there is already quite a lot of experience in CSR departments, but the field is also expanding and maturing. 
Further analysis of the data reveals that most respondents are at the manager level or above, and those with more than 20 
years of experience are likely to be directors, vice-presidents, or C-level executives. It appears that CSR and sustainability offers 
a defined career path with an upward trajectory, particularly for those with more than 10 years of experience.
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

Percentage of CSR and Sustainability Roles Devoted to ESG Initiatives
100%
More than 50%
50%
Less than 50%
What percentage of your role or department is devoted to overseeing ESG initiatives?
% of role overseeing ESG
0%
20%
40%
60%
80%
100%
44%
33%
12%
11%
CSR and sustainability professionals are taking on a lot of ESG-related activities and programs, including reporting and disclosure, 
setting goals and measuring progress, strategy, planning and execution, and more. Close to half of respondents (44%) say they 
manage all of their firm’s ESG activities. Another 33% of respondents manage more than half of their firm’s ESG work. Less 
than one-quarter of respondents (23%) said they are only managing half or less of their firm’s ESG-related tasks. For the 56% of 
respondents who are not managing all ESG-related tasks, it is likely that a range of other departments are involved.
Survey data further revealed that VP and C-level professionals are least likely to be engaged with all ESG activities. These findings 
suggest that ESG-oriented tasks are embedded in corporations, but not evenly. Top-level executives especially are still likely to have 
responsibilities that extend beyond ESG.
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

CSR Involvement in Specific ESG Areas
Please rate how involved your role or department is in the following ESG areas.
Reporting and disclosure
ESG ratings or scores
Target setting and measurement 
Program planning and execution
Stakeholder engagement
Sustainable operations
Supply chain
Financing
Very involved
Regularly involved
Not at all involved
0%
20%
40%
60%
80%
100%
80%
71%
66%
58%
49%
40%
20%
15%
15%
19%
29%
35%
44%
48%
56%
45%
5%
10%
5%
6%
7%
12%
23%
40%
Respondents say they are very involved in tasks such as reporting and disclosure (80%); ESG ratings or scores (71%); target 
setting and measurement (66%); and program planning and execution (58%). Only 20% are very involved in supply chain 
management and 15% in financing. 
It’s likely that lower-involvement tasks still tend to be handled by other departments outside CSR or sustainability; e.g., stakeholder 
engagement by corporate communications and investor relations, and financing by the CFO and treasury department.
Looking deeper into the survey results found that VP and C-level executives are heavily involved in reporting and disclosure, 
financing, and target-setting. Individual contributors and managers are still participating in these tasks, but are somewhat less 
involved. Finance, in particular, is led and managed by senior leadership. There may be opportunities for greater alignment 
between finance and sustainability teams.
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

“It seems companies are ‘committed’ to sustainability to make sure they are 
compliant. They are not as committed to the less regulated areas of sustainability. 
I am often seeing jobs either aimed at communications experts who can ‘tell 
the story’ or finance experts who mainly understand ESG with regard to how 
financial institutions require information. There are limited roles for true corporate 
sustainability specialists whose skillset lies in implementing holistic sustainability 
strategies and programs.”
“I believe CSR has a limited scope and does not look at the impact of operations 
across the entire value chain. ESG is a term we use when the focus is on risks and 
opportunities emanating from E, S, and G issues. ESG mostly applies in regard to 
financial institutions, the investment community, and how these ESG issues may 
affect the long-term value of the company. Sustainability entails every aspect of the 
company, including how products and services contribute to society’s needs.”
ALEXANDRA BRENNAN
Head of Sustainability  
Johnson Service Group PLC
PANOS SKIADAS
Sustainability Senior Director  
Viohalco SA
What Respondents Are Saying About the State of ESG  
in CSR and Sustainability
“I see ESG and CSR as interlinked, but very different. CSR is more representative of 
a pathway within an organization that is focused externally on the important work 
of community engagement, investment, and partnerships, and charitable giving. 
In contrast, ESG is an integral part of a business strategy that is driven by data, 
metrics, and defined targets, which contribute to an organization’s bottom line and 
respond to regulatory and legal frameworks.”
ARAGON ST-CHARLES
Global Head of ESG
Dentons
THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION
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ESG Motivations
Organizations respond to a wide range of motivations as they shape their ESG mandates and address stakeholder 
expectations. However, respondents indicated that compliance with regulation and disclosure rules ranks at the top 
of the list of ESG-oriented motivations, while financial considerations are at the bottom. The results suggest that 
ESG decision-making is most influenced by external regulation and senior leadership. 
Importance of ESG Motivations
Please rate how important the following ESG motivations are for your organization.
Meeting regulations and complying with 
disclosure rules 
Achieving environmental goals (e.g., reducing 
carbon emissions, waste, pollution, etc.)
Improving brand or reputation
Being a good corporate citizen
Responding to stakeholder pressure for 
transparency and accountability
Enhancing financial performance
Allocating capital to strategic priorities
Very important
Somewhat important
Not at all important
0%
20%
40%
60%
80%
100%
83%
64%
67%
65%
62%
56%
46%
15%
34%
29%
32%
35%
36%
47%
4%
9%
7%
The most important motivator for corporate ESG action is meeting regulations and compliance requirements (83% rate it very 
important). However, broadly speaking, respondents consider all of the motivations as important (90% or higher), when seen 
together as somewhat important and very important.
The least important issues are enhancing financial performance (56% rate it very important) and allocating capital to 
strategic priorities (46%), which may reinforce the idea that these aspects of ESG are being managed outside of the CSR or 
sustainability department.
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

Stakeholder Influence Over ESG Planning and Strategy
Please rate the influence the following stakeholders have over your organization’s ESG planning or strategy.
C-level/senior leadership
Government regulators
Clients/customers
Institutional investors
Employees
Corporate communications
Finance and treasury department
Activist investors 
Major influence
Moderate influence
No influence
0%
20%
40%
60%
80%
100%
81%
54%
53%
46%
33%
25%
24%
22%
18%
38%
41%
40%
57%
60%
59%
47%
8%
14%
6%
10%
15%
17%
31%
In general, the main push for ESG planning and strategy comes from senior leadership (81%), followed by regulators (54%), 
clients and customers (53%), then institutional investors (46%). Respondents reported that the least influential stakeholders are 
activist investors (22%) and finance and treasury departments (24%). The findings reinforce other survey results showing the 
importance of regulations and compliance, which are top concerns for senior leaders.
Insight From Our Experts
“Most companies new to disclosing on ESG factors are motivated to comply with 
regulatory or quasi-regulatory guidelines or by recent investor engagement. Leading 
companies with multi-year experience in disclosing on ESG matters tend to focus on 
achieving ‘beyond compiance’ results, such as meeting best-in-class environmental 
goals and maintaining a strong brand identification with excellent corporate citizenship 
and strong stewardship over the environment.”
ERIC FERNALD 
ESG Research Director 
Morningstar Sustainalytics
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

What Respondents Are Saying About ESG Motivations
“ESG is a growing trend, but it’s not equivalent to sustainability, which is 
a much broader concept that drives the transitions needed towards a 
better future. It is important to move beyond the risk mitigation aspect 
of ESG to a purpose-driven ESG.”
PATRICK HO
Deputy Head, Sustainable Development 
Swire Properties Ltd.
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

ESG Strategy
The majority of survey respondents reported that their firms have a documented ESG strategy. The results also 
reveal how these strategies develop, from identifying material ESG issues, to goal-setting, establishing KPIs, and 
finally, putting it all together in a formal strategy document. 
Adoption of Formal Documented ESG Strategies
Yes
In progress
Not sure
No
8%
2%
64%
26%
Does your organization have a formal documented ESG strategy?
Nine in ten survey respondents (90%) said their firms have or are developing a formal ESG strategy. It appears that companies 
that employ CSR and sustainability professionals are highly likely to have a formal ESG strategy or have one in progress.
A small proportion of respondents (2%) aren’t sure about their firms’ ESG plans, which raises questions about how companies 
integrate and communicate their efforts across the organization.
Looking closer at the data found that larger companies are more likely to have formal ESG strategies, including approximately 
60% of the largest companies and 35% of large companies. Medium-sized firms are most likely to be developing an ESG strategy. 
Smaller firms are also getting in on the action: about one-fifth of smaller companies have an ESG strategy or are working on one.
Insight From Our Experts
“These survey results appear to line up with our ESG research, which finds that larger, 
established companies in sectors with long histories of disclosing on ESG matters 
tend to have well-developed strategies for managing their sustainability impact. Newer 
entrants to the field have the challenge of identifying the most important material issues 
and then developing – often over several years – the programs to manage these impact 
areas and the data to reveal performance. On the upside, these new entrants benefit 
from the experience of the leaders in their industry.”
ERIC FERNALD 
ESG Research Director 
Morningstar Sustainalytics
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

Identification of Strategic ESG Issues
Yes
In progress
Not sure
No
4%
2%
78%
16%
Has your organization identified the ESG issues that are most important to your corporate strategy?
According to the results, firms are substantially more likely to have identified the ESG issues that are most important to their strategy 
(78%) than to have implemented a formal strategy for tackling the issues (64%), as seen on Page 15 above. These results suggest that 
identifying strategic ESG issues is a step toward developing a formal ESG strategy.
Further analysis of the data reveals that companies with 1,000 or more employees are most likely to have identified their strategic ESG 
issues. Curiously, almost three in ten CSR and sustainability professionals with large firms remain unsure of the status of these issues. 
The takeaway is that large firms dedicate real resources to ESG, likely due to a range of factors, including the heightened pressure they 
face from investors, regulators, customers, and other stakeholders. 
Identification and Adoption of ESG Goals With Specific KPIs
Yes
In progress
Not sure
No
8%
1%
61%
30%
Has your organization identified and adopted ESG goals with specific KPIs?
The majority of those surveyed said their firms had identified and adopted ESG goals with specific KPIs (61%), or were in the 
process of doing so (30%). This is a key intermediary step between identifying strategic issues and formally establishing a strategy 
to address them. 
Further analysis shows that both medium companies and the largest companies are most likely to have adopted goals and KPIs, 
although respondents at smaller firms are less sure what their KPIs are.
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

ESG Challenges
Implementing an ESG program is far easier said than done. Many companies are still at the beginning stages of their 
ESG programs and are dealing with important structural challenges, like securing adequate resourcing and human 
capital, before they can start to take on the technical challenges like measuring, reporting, and disclosure, and meeting 
regulations and standards. Nonetheless, whatever the challenges, companies are finding resources to meet them.
Challenges to Executing ESG Programs or Activities
Please rate the impact of the following challenges with respect to executing ESG programs or activities.
Budget constraints
Lack of human resources
Measuring, reporting, and disclosure
Setting goals and targets
Meeting regulations or standards
Leadership buy-in
Lack of internal expertise
External issues (e.g., COVID-19, armed 
conflict, etc.)
Severe impact
Moderate impact
No impact
0%
20%
40%
60%
80%
100%
35%
34%
33%
32%
28%
23%
24%
18%
54%
11%
53%
51%
52%
51%
52%
46%
55%
13%
16%
16%
21%
25%
30%
27%
Respondents said the biggest hurdles when it comes to ESG programs are structural issues, specifically budget constraints 
(89% severe or moderate impact) and lack of human resources to do the work (87% severe or moderate impact). The next 
most challenging obstacles are technical concerns around setting goals, measuring, reporting, and disclosure (86% severe or 
moderate impact) and meeting regulations (79% severe or moderate impact). Next is a key cultural issue: gaining leadership 
buy-in (70% severe or moderate impact).
The top challenges facing CSR and sustainability professionals relate to key steps required to build an effective ESG program. 
This suggests that respondents are working through expected issues, but they may need additional support.
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

How Organizations Are Meeting the Challenges
What resources or tools have you used to meet the challenges? Select all that apply.
ESG consultant
External ESG standards/written 
guidance
Internal hires
Third-party ESG service provider
ESG software
Capital investments
Sustainable financing 
None
Other (please specify)
0%
15%
30%
45%
60%
75%
61%
58%
46%
27%
27%
17%
25%
6%
4%
About three in five respondents (61%) seek out external consultants to help address ESG challenges, and a similar proportion 
look to external standards or written sources of guidance for direction (58%), possibly due to resource constraints. 
Almost half of respondents are hiring staff to carry out ESG programs (46%). Others are looking to third-party ESG service 
providers (27%) like Sustainalytics, ESG software (27%), and capital investments (25%). Fewer than one-fifth of respondents 
(17%) say they are applying sustainable finance to further their ESG goals. When viewed alongside other survey data, this 
suggests that sustainable finance is handled by other departments and perhaps respondents are more focused on the practical 
details of ESG: understanding their material ESG issues, setting goals and targets, measurement and reporting, planning and 
executing, likely with help from consultants or third-party service providers. 
Further analysis shows that the largest firms are most likely to use ESG software, capital investments, and internal hires, 
whereas small and medium enterprises are more likely to draw on other tools, such as in-house skills development. 
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THE MORNINGSTAR SUSTAINALYTICS CORPORATE ESG SURVEY REPORT 2022  |  CSR AND SUSTAINABILITY IN TRANSITION

What Respondents Are Saying About ESG Challenges
“The ESG landscape is ever-evolving and growing more complex 
due to a number of key drivers, which puts a great deal of 
pressure on public companies to showcase how ESG is being 
operationalized at every level within the company. ESG brings 
about great opportunities for innovation and risk management. Yet 
the challenge also lies in the fact that there is an education process 
as each ESG roadmap and journey is unique.”
LEYLA ALIJANI
VP, Environmental Social Governance Officer, 
Pacific Western Bank
Insight From Our Experts
“Resources — including staffing — are a perennial challenge for all companies, 
regardless of size. Larger companies have more resources, but often face daunting 
complexity in developing and implementing corporate-wide programs that generate 
consistent year-over-year data. The focus often is to spend resources wisely in order to 
maintain standing within one’s peer set.
Mid-sized to smaller companies have smaller budgets and less staff. For these 
companies it is not uncommon for ESG strategy and reporting responsibilities to be 
assigned to an individual in a traditional department such as investor relations or 
corporate communications. Critical to success is leveraging information from the global 
standards organizations and the ESG rating agencies, such as Sustainalytics.”
ERIC FERNALD 
ESG Research Director 
Morningstar Sustainalytics
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ESG Priorities
With increasing public and media attention on climate and extreme weather events, it should come as no surprise that 
corporate ESG programs focus more on environmental issues than social and governance concerns. Nonetheless, the 
survey results suggest that social issues are gaining increased attention from corporations. At any rate, there is a very 
broad range of issues that CSR and sustainability professionals are expecting to address in the coming year, covering 
all of the ESG areas.
Importance of Environmental, Social, and Corporate Governance Issues
In terms of your organization’s ESG efforts, please rank environmental, social, and corporate governance by order of importance. 
Environmental
Corporate governance
Social
Most important
Moderately important
Least important
0%
20%
40%
60%
80%
100%
53%
25%
22%
26%
21%
29%
45%
46%
33%
Respondents report that their firms place most importance on environmental issues (53% rated it most important), followed by 
corporate governance (25%) and social issues (22%). However, when considering most important and moderately important 
rankings together, the numbers tell a slightly different story. Looked at this way, environmental issues remain the most 
important overall, but social issues come second, and governance is third. These results align with firms’ priorities for the 
upcoming year (see the next section) and may indicate that companies are starting to increase their attention to social issues. 
Insight From Our Experts
“The overall priority that corporations put on addressing environmental issues is 
in line with the way the regulatory environment has evolved. As regulation, at least 
in certain regions, is advancing around environmental topics and less so on social 
topics, companies’ emphasis on the E versus the S and the G seems natural. That 
said, Sustainalytics does see an increase in attention paid to social issues, attempts 
to standardize reporting hereto, etc. This development is triggered by strong public 
responses to a range of social issues, including mistreatment of minority groups, 
which have been amplified by social media.”
WILCO VAN HETEREN
Senior Vice President, ESG Research
Morningstar Sustainalytics
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ESG Priorities for the Coming Year
What ESG issue(s) does your company intend to prioritize over the coming year? Select all that apply.1
Carbon emissions from your own operations
Emissions, effluents, and waste
Carbon emissions from your products and services
Occupational health and safety
Environmental and social impact of products and services
Human capital
Business ethics
Human rights
Community relations
Human rights in your supply chain
Data privacy and security
Bribery and corruption
Resource use
Land use and biodiversity
ESG in financial lending and investment decision-making
Resource use in your supply chain
Product governance
Resilience (financial institutions)
Access to basic services
Land use and biodiversity in your supply chain
None of the above
Other (please specify)
0%
20%
40%
60%
80%
100%
By far, the top ESG priority is reducing carbon emissions from operations (84%). This is followed by emissions, effluents, and 
waste (61%), carbon emissions from products and services (59%), occupational health and safety (58%), and the environmental 
and social impact of products and services (55%). Firms are placing lower priority on land use and biodiversity (30%), resource 
use in supply chains (23%), product governance (19%), resilience (17%), and access to basic services (15%). 
The top 11 priority items are essentially ongoing concerns, although human rights (including in supply chains), community 
relations, and data privacy and security could be considered hot-button issues.
Of the lower priority items, several of them relate to specific sectors or types of business, which may explain the result. For 
example, resilience and ESG in lending and investing decision-making mainly apply to financial institutions. Access to basic 
services mainly applies to healthcare providers. These are likely high priorities for those specific sectors to which they apply. 
Other topics companies are less focused on are still emerging issues like resource use and biodiversity. 
1 These options are based on Morningstar Sustainalytics’ material ESG issues (MEIs). Learn more on our MEI resource center.
84%
61%
59%
58%
55%
51%
48%
48%
45%
42%
40%
34%
32%
30%
28%
23%
19%
17%
15%
14%
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ESG Reporting and Service Providers
As firms ramp up their ESG efforts, they inevitably recognize the importance of accurate reporting that meets 
global, regional, or industry standards. Most companies have adopted at least one reporting framework to guide 
their efforts and have sought assistance with measurement and reporting from third parties.
Adoption of ESG Reporting Standards or Frameworks
Have you adopted any of the following ESG reporting standards or frameworks? Select all that apply.
Global Reporting Initiative (GRI)
Task Force on Climate-related Financial Disclosures (TCFD)
Sustainability Accounting Standards Board (SASB)
Climate Disclosure Project (CDP)
Science-Based Targets Initiative (SBTI)
Integrated Reporting Framework (IRF)
Corporate Sustainability Reporting Directive (CSRD)
International Sustainability Standards Board (ISSB)
Greenhouse Gas Management (ISO 14080:2018)
None of the above
Other (please specify)
0%
15%
30%
45%
60%
75%
66%
51%
44%
44%
30%
13%
13%
12%
10%
10%
10%
All of the top choices are established frameworks or standards with broad application, while the less common options are 
mainly either new or sector-specific. 
The Global Reporting Initiative (GRI) is one of the oldest ESG standards and may be the most widely used globally, with 66% of 
respondents following GRI. The Task Force on Climate Related Financial Disclosures (51%) has been widely adopted by financial 
institutions and investors, making it essential for many issuers to report to this standard. Indeed, U.K. companies will be required to 
report on it by 2025.
Frameworks like the Corporate Sustainability Reporting Directive (10% following) and the International Sustainability Standards 
Board (10%) apply broadly, but are still relatively new and we can expect their use to grow over the coming years.
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Assistance With Measurement or Reporting From External ESG Service Providers
Do you currently use any of the following types of external ESG service provider for assistance with 
measurement and/or reporting? Select all that apply.
Consultant
Ratings provider
Software
Financial institution
No
Not sure
Other (please specify)
0%
15%
30%
45%
60%
75%
60%
33%
22%
6%
21%
3%
6%
Three in five organizations (60%) seek out external ESG consultants for support with measurement and reporting. This option is far 
more popular with firms than the use of ratings providers (33%), ESG software (22%), and advice from financial institutions (6%). 
Additional analysis shows that the smallest companies are more likely to use ESG software for measurement or reporting, and 
small firms are more likely to rely on financial institutions for support. 
In an interesting parallel, both the smallest and largest companies use ratings providers the least. A deeper dive into the data 
reveals that small companies are worried about the time and effort required and they don’t see the need or value. The largest firms, 
on the other hand, are having trouble gaining leadership buy-in and understanding where to start.
Insight From Our Experts
“While GRI standards have been guiding companies around the world in voluntarily 
communicating their impact on the economy, environment, and society for more than 
two decades, we have certainly seen a multifold increase in adoption of both SASB 
and TCFD-led reporting in the past decade. Being focused on financial materiality and 
governance, the latter recommendations are also being adopted by corporations at a 
fast pace led by investor interest, existing regulations on environmental reporting, as well 
to account for upcoming climate change directives. 
Overall, with investors keen to review ESG and climate change input, companies are 
referring to multiple reporting frameworks to provide reliable and consistent ESG 
information accounting for risks as well as opportunities. Data findings from the survey 
confirm this trend and we anticipate that companies large and small will be able to build 
the business case internally for ESG and sustainability-related budgets that suit their 
varied requirements.”
SHILPI SINGH
Corporate Solutions Director 
Sustainable Finance Solutions
Morningstar Sustainalytics
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Reasons for Not Working With a Third-Party ESG Service Provider
Why have you not worked with a third-party ESG service provider? Select all that apply.
Don’t see need or value
Cost
Don’t know where to start
Not enough human resources
No leadership buy-in
Concerned about time required
Other (please specify)
0%
5%
10%
15%
20%
25%
30%
29%
22%
13%
7%
6%
19%
4%
Respondents that are not working with ESG service providers on measurement or reporting are most likely to say they don’t see 
the need or value (29%), followed by cost concerns (22%). The finding suggests that CSR and sustainability professionals may 
need to better articulate to leadership the business case for using third-party ESG service providers for rigorous measurement and 
reporting of ESG data.  
Respondents also specified other reasons for not working with a third-party ESG service provider, including being unfamiliar with 
the service provider market and doing the work with internal resources. In addition, medium-to-large firms are most likely to cite a 
dearth of human resources as a reason for not retaining a third-party ESG service provider, while large companies are most likely to 
say they don’t have C-level buy-in.
What Respondents Are Saying About Reporting and Service Providers
“As ESG becomes a fixture in the board room, the focus is shifting away from 
convincing businesses to act and towards linking ESG criteria to value creation. 
Regulators and policy makers must develop a global best practice approach to ESG 
disclosures. Agreeing on a clear, measurable, and transparent sustainability set 
for businesses to benchmark performance will give investors and stakeholders an 
additional lens to identify risks and opportunities that determine a company’s added 
value to solving our shared, global challenges.”
SARAH DUTTON
Marketing Executive  
Simply Sustainable Ltd.
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ESG Ratings
When a company obtains an ESG rating or score, they generally also receive essential data and insights from the 
provider. These can help companies in a variety of key ways, from reporting and compliance, to investor relations and 
PR, to benchmarking and making internal improvements, to obtaining financing and understanding peer performance.
Adoption of ESG Risk Ratings or Scores
Yes
No
Not sure
10%
61%
29%
Does your organization have an ESG risk rating or score from Sustainalytics or any provider?
While more than 60% of respondents confirm their companies have an ESG Risk Rating or score, another 30% say they don’t, 
and 10% aren’t sure. Interestingly, the number of CSR and sustainability professionals that aren’t sure of their rating status is 
fairly consistent across companies of all sizes. This result may suggest there is a communication gap if those tasked with 
managing ESG aren’t aware of whether their company has an ESG rating or score.
Additional analysis finds that ESG ratings are more prevalent among larger companies (1,000 or more employees), with 
declining adoption among medium and small organizations. 
What Respondents Are Saying About ESG Ratings
“There is too much complexity in too many frameworks 
and competing ESG ratings. Transformation is required 
in the ratings space to eliminate duplication and allow 
organizations to devote more time to action rather than 
reporting and disclosure.”
JONATHAN GARRETT
Director, Group Health, Safety and Sustainability 
Tyman PLC
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Use of ESG Rating or Score
How do you use your ESG rating? Select all that apply.
Annual CSR/ESG reporting
Investor relations
Marketing/PR
Currently not in use
Annual financial reporting
Sustainable finance
Other (please specify)
0%
5%
10%
15%
20%
25%
30%
28%
27%
16%
9%
9%
5%
7%
By far the most frequent uses of ESG ratings are for annual CSR or ESG reporting (28%) and investor relations (27%), likely due to 
disclosure requirements. Many firms also leverage their ESG ratings for marketing and PR purposes (16%) and annual financial 
reporting (9%). Less common uses are: obtaining sustainable financing (7%), and other uses (5%) such as conducting gap analysis, 
benchmarking performance, and making internal improvements. Some companies have a rating, but aren’t currently using it (9%). 
Companies of all sizes use their ratings or scores similarly, but larger companies make the most active use of this aspect of their ESG 
programs. The largest firms are most likely to use their rating for accessing sustainable finance; small and medium firms are the least 
likely to use their rating for this purpose.
Insight From Our Experts
“The good news is that the majority of respondents have confirmed their awareness 
of ESG ratings for their organization. Given that ESG ratings are now freely available 
on multiple public platforms, there is a wealth of information companies can refer to in 
order to either find a starting point, if new to ESG, or advance into peer or market level 
benchmarking. Certainly, bigger public companies are more conscious of their ratings 
and proactive about their public messaging with investor relations and dedicated ESG 
departments involved for long-term strategy integration. But private markets are also 
warming up to the need for transparency on ESG parameters and the various benefits 
they can derive from improved disclosures.”
SHILPI SINGH
Corporate Solutions Director 
Sustainable Finance Solutions 
Morningstar Sustainalytics
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Conclusion
This survey report illustrates how the primary challenges facing companies with ESG programs are in effectively 
measuring, reporting, and disclosing data for the purposes of meeting regulations and taking the necessary steps to 
set up an effective ESG program and strategy. Companies with active and experienced CSR and sustainability teams 
are best positioned to embark on these journeys. Nonetheless, while CSR and sustainability professionals bring 
substantial knowledge about program deployment and risk mitigation, the survey results point to knowledge gaps, in 
terms of accessing resources and leveraging ESG data.
We hope these findings shed light on the state of corporate ESG generally and the evolving relationship between 
ESG and the CSR and sustainability professions. Our goal with this survey report is to help CSR and sustainability 
professionals gain insight into peer practices, understand the evolving ESG landscape, particularly as it directly affects 
them, and learn where investment in ESG programs is going – to make progress in advancing corporate ESG goals. 
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About Morningstar Sustainalytics
Morningstar Sustainalytics is a leading global ESG research, ratings, and data firm supporting corporations and 
their financial intermediaries to consider sustainability issues in their policies, practices, and capital projects. As 
the leading second-party opinion provider in the market, Sustainalytics offers issuers credible verification on the 
use of proceeds for sustainable finance products. Corporations also leverage Sustainalytics’ ESG Risk Ratings to 
understand and promote their ESG performance with their internal and external stakeholders. The firm has received 
awards in recognition of its ESG solutions and opinion services, most recently from Climate Bonds Initiative, 
Environmental Finance, and GlobalCapital. With 17 offices globally, Sustainalytics has more than 1,700 staff 
members, including more than 800 analysts with varied multidisciplinary expertise across more than 40 industry 
groups. For more information, visit www.sustainalytics.com.
www.sustainalytics.com
Global Contacts
EMEA:
(+44) 20 4526 5640
inquiries.EMEA@sustainalytics.com 
Americas:
(+1) 347 630 9308
inquiries.Americas@sustainalytics.com
APAC:
(+65) 6329 7596
inquiries.APAC@sustainalytics.com
Japan:
(+81) 3 4567 0198
inquiries.Japan@sustainalytics.com

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