TreasurySpring, the global cash investment platform, has launched the latest iteration of its sustainable finance survey, conducted in collaboration with the London Stock Exchange [LSE] and The Association of Corporate Treasurers [ACT].

Now in its third year, the study offers an in-depth look at how corporate ESG strategies are evolving in response to economic, regulatory, and reputational pressures. Based on a global survey of corporate treasurers, collectively representing an estimated £80 billion in cash balances, the 2024 findings reveal a clear shift: companies are moving from broad ESG enthusiasm to more focused, pragmatic, and risk-aware approaches.

In a year marked by geopolitical tensions, inflationary pressures, and growing regulatory scrutiny, companies are reassessing how ESG fits into their overall financial decision-making. The findings suggest that companies are moving forward with greater caution – balancing long-term ESG ambitions with short-term financial and operational constraints.

Key findings:

• Institutional investing in ESG products falls: the proportion of organisations not currently invested in institutional ESG products has jumped to 55%, up from 32% in 2023.
• Decline in ESG’s influence on cash investing: falling from 63% in 2022 to 30% in 2024.
• Rise in ESG’s influence in supply chain management: from 35% in 2023 to 47% in 2024, reflecting increased regulatory and reputational pressures. Short-term financing considerations remain stable.
• Changing perceptions on risk within ESG: Greenwashing remains the top concern (44% in 2024), but this is a sharp drop from 69% in 2022.

Nigel Owen, Head of Corporate Origination, TreasurySpring, commented: “The fluctuating influence of ESG in determining cash investment strategies is something our clients speak to us about regularly. Our latest report shows signs that ESG investment is undergoing something of a retrenchment - but not an outright rejection. While ESG adoption may be slowing, the commitment to sustainable finance is maturing. Companies are moving beyond broad ambitions toward more focused, credible approaches, prioritising operational impact, investor alignment, and measurable results. The challenge now is delivering on that commitment with the practical constraints of today’s world.”

Sam Dodd, Senior Manager, Fixed Income, Primary Markets, LSE,  added: “Both companies and investors continue to refine their sustainability strategies, focussing on driving long-term value by managing financially quantifiable sustainability-related risks and opportunities. As strategies evolve, effective sustainability reporting and enhanced transparency may enable more effective engagement with investors.”