Dive Brief:
- Governance-related issues have replaced environmental concerns as the top ESG reputational risk this year, according to a new survey from advisory and consultancy firm GlobeScan.
- The survey, conducted between February and April 2026, asked 294 corporate leaders across the globe to rank the three pillars of ESG — environment, social and governance — from highest to lowest in terms of the reputational risk they posed to their business.
- Nearly half of the respondents (45%) identified governance as the biggest reputational risk this year, up from the 29% that ranked it as a top threat in 2024. Environmental issues were ranked as the top risk by less than a third of respondents (27%), down from 39% in 2024. Social issues remained the lowest ranked of the three components during this time period, with only 26% of respondents citing it as a leading risk in 2026, according to the survey.
Dive Insight:
GlobeScan said the reordering of perceived risk “highlights rising concern over corporate ethics and accountability.” Meanwhile, the decline in environment as a top risk and continued low ranking of social issues could indicate that these factors “might be seen as more stable or manageable in the near term.”
The consultancy firm added that the sharp rise of governance as a reputational risk points to increasing concerns among corporate leaders about compliance, ethics and internal governance. Those concerns are driven in part by regulatory pressures, heightened stakeholder scrutiny and notable corporate governance lapses in recent years, GlobeScan said.
Governance issues and related risks have lately been top of mind for company executives, shareholders and consumers alike.
Last week, oil giant BP announced it had removed its Chair and Director Albert Manifold, citing “serious concerns” brought to the board “related to important governance standards, oversight and conduct.” Though BP’s official statement did not elaborate on the specific issues raised to the board, Manifold had come under fire for his handling of a shareholder resolution submitted by activist investor Follow This.
Last month, a coalition of activist investors asked Target shareholders to vote against the reelection of its current leadership at the company’s annual shareholder meeting in June, citing the retailer’s lagging financial performance, which the group attributed to a “series of operational and strategic missteps.”
In a letter addressed to shareholders, the investors — Trillium Asset Management, SOC Investment Group and Mercy Investment Services — called out Target’s decision to end some diversity, equity and inclusion initiatives, scale back Pride-themed merchandise, and its limited response to Immigration and Customs Enforcement raids at its Minnesota locations as some of the “missteps” that have recently spurred consumer backlash and reputational harm.
GlobeScan said leaders ranking governance as the top reputational risk this year “underscores the imperative to strengthen governance practices as a core element of reputation management.”
“With governance now at the forefront, organizations may need to double down on internal ethics, transparency, and compliance, ensuring robust oversight and crisis protocols to prevent and respond to governance failures that can quickly erode trust,” the consulting firm added.
