FTSE 100 companies are strong on environmental and governance issues but are ignoring the social aspect of ESG, according to research.
Think tank Social Market Foundation (SMF) found 53% of blue-chip companies failed to mention poverty in their financial year 2019-2020 annual reports
The word “governance” in contrast appeared 176 times on average, “Environment” 64 times but “poverty” was mentioned only once.
"If companies are seen to promise to do good but won’t address something as fundamental as poverty among their workers, suppliers and neighbours, the public and those who invest their money will start to wonder if ESG really means anything and lose trust in business,” said director James Kirkup.
The report is part of a project with Trust for London, a grant giving body, which is working with businesses to “develop and promote practical ways” companies can tackle poverty.
While social issues take a back seat for FTSE 100 companies, SMF found 79% of London-based businesses agreed poverty is an issue that impacts people in the capital.
The number of London households living in poverty with at least one full time working parent has risen 50% in the last decade, with more than half a million children in poverty coming from working homes.