Table 3. Individual preferences and...

Table 3.

Individual preferences and proportions*: comparing the most important vs the least important ESG factor (%)

	All %		Male %		Female %		Brazil %		China %		Germany %		USA %
Activity (ESG #; description)	Best	Worst	Best	Worst	Best	Worst	Best	Worst	Best	Worst	Best	Worst	Best	Worst
(E1) Has energy savings initiatives	21	11	23	10	18	12	19	13	21	8	24	9	19	15
(E2) Has water savings initiatives	16	18	15	17	17	18	24	11	12	24	16	14	11	21
(E3) Measure carbon footprint	13	25	13	27	13	22	19	14	15	27	7	32	11	26
(E4) Recycles raw material	21	13	21	13	22	14	22	15	22	10	29	11	13	18
(E5) Uses recyclable packaging	18	17	18	17	18	18	20	17	23	12	17	17	11	24
(E6) Policy for clean transportation and logistics	18	15	17	17	21	13	22	15	21	15	17	13	13	19
(S1) Does not avoid paying taxes	16	21	15	21	17	20	12	27	13	21	18	18	21	18
(S2) Pays fair wages to employees	37	7	36	7	38	8	39	7	28	11	39	6	42	5
(S3) Profit-sharing with employees	23	15	25	15	20	17	21	16	20	14	23	15	27	17
(S4) Donates to charities	10	32	8	35	11	29	14	19	12	32	4	43	9	36
(S5) Does not use child labor	39	13	41	12	37	13	37	10	25	20	53	8	41	12
(S6) Collaborates with unions	8	39	9	38	8	42	7	48	5	41	10	33	10	36
(S7) Has a supplier code of conduct	17	18	16	16	17	21	13	22	24	13	14	18	15	19
(S8) Provides safe working conditions	35	9	34	9	35	9	20	15	42	8	33	6	44	6
(S9) Promotes diversity and equal opportunity	30	13	26	14	37	12	38	13	40	9	21	17	24	14
(G1) Has a board member responsible for CSR	17	22	16	23	19	21	16	23	30	13	12	28	9	26
(G2) Shareholders approve exec. Compensation	15	29	20	26	10	34	9	36	7	34	23	24	23	24
(G3) Requires independent board members	13	28	16	24	9	33	6	38	8	28	17	21	20	23
(G4) Requires female board members	9	43	7	48	11	36	12	34	5	52	9	52	9	34
(G5) Has a CSR/ESG policy	17	19	17	20	17	17	16	19	28	8	11	23	13	24
(G6) Manages cyber security risk	18	15	20	13	16	18	18	16	14	20	16	15	26	10
(G7) Has an anti-corruption policy	29	16	28	16	30	15	33	13	24	20	28	15	28	15

	All %		Male %		Female %		Brazil %		China %		Germany %		USA %
Activity (ESG #; description)	Best	Worst	Best	Worst	Best	Worst	Best	Worst	Best	Worst	Best	Worst	Best	Worst
(E1) Has energy savings initiatives	21	11	23	10	18	12	19	13	21	8	24	9	19	15
(E2) Has water savings initiatives	16	18	15	17	17	18	24	11	12	24	16	14	11	21
(E3) Measure carbon footprint	13	25	13	27	13	22	19	14	15	27	7	32	11	26
(E4) Recycles raw material	21	13	21	13	22	14	22	15	22	10	29	11	13	18
(E5) Uses recyclable packaging	18	17	18	17	18	18	20	17	23	12	17	17	11	24
(E6) Policy for clean transportation and logistics	18	15	17	17	21	13	22	15	21	15	17	13	13	19
(S1) Does not avoid paying taxes	16	21	15	21	17	20	12	27	13	21	18	18	21	18
(S2) Pays fair wages to employees	37	7	36	7	38	8	39	7	28	11	39	6	42	5
(S3) Profit-sharing with employees	23	15	25	15	20	17	21	16	20	14	23	15	27	17
(S4) Donates to charities	10	32	8	35	11	29	14	19	12	32	4	43	9	36
(S5) Does not use child labor	39	13	41	12	37	13	37	10	25	20	53	8	41	12
(S6) Collaborates with unions	8	39	9	38	8	42	7	48	5	41	10	33	10	36
(S7) Has a supplier code of conduct	17	18	16	16	17	21	13	22	24	13	14	18	15	19
(S8) Provides safe working conditions	35	9	34	9	35	9	20	15	42	8	33	6	44	6
(S9) Promotes diversity and equal opportunity	30	13	26	14	37	12	38	13	40	9	21	17	24	14
(G1) Has a board member responsible for CSR	17	22	16	23	19	21	16	23	30	13	12	28	9	26
(G2) Shareholders approve exec. Compensation	15	29	20	26	10	34	9	36	7	34	23	24	23	24
(G3) Requires independent board members	13	28	16	24	9	33	6	38	8	28	17	21	20	23
(G4) Requires female board members	9	43	7	48	11	36	12	34	5	52	9	52	9	34
(G5) Has a CSR/ESG policy	17	19	17	20	17	17	16	19	28	8	11	23	13	24
(G6) Manages cyber security risk	18	15	20	13	16	18	18	16	14	20	16	15	26	10
(G7) Has an anti-corruption policy	29	16	28	16	30	15	33	13	24	20	28	15	28	15

Note(s):

*Proportions: to assess e.g. which “G” activity US investors view as most important, we find them to de facto select G7 (anti-corruption policy) the most times (28% times). Yet, proportions assess the largest difference between the number of times a specific ESG activity was selected as the best (most) vs worst (least) important. Using this calculation, we find G6 to be more interesting from a comparative point of view, i.e. the G7 difference (28% vs 15%) is 28 / 15 = 1.86, or 186%, compared to the G6 difference (26% vs 10%), which is 26 / 10 = 2.6, or 260%. Hence, in absolute measure, US investors rate G7 as the most important “G” activity, yet from a proportional perspective, G6 is the most important “G” activity given its larger difference (%)

Source(s): Table by authors

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