The leaders of large companies “freeze” plans for environmental, social action and corporate governanceas they prepare for the consequences of a possible recession.

Relevant conclusions follow from studies conducted by a group of business consultants and related services. KPMG. About half of the respondents are either ending or revisiting their existing or planned initiatives to achieve these goals in the next six months, and about a third of them have already done so. “And as leaders take steps to protect their businesses from a looming recession, action on environmental and social targets and corporate governance is under increasing pressure,” said Jane Laurie, director of global corporate affairs at KPMG.

Most of the executives who took part in the survey emphasized that environmental, social and governance issues are an integral part of their success. But with the challenges caused by the shrinking economy, businesses are now trying to balance “medium-term environmental concerns with short-term economic and social stability,” Ms Laurie said. More than 8 in 10 global group leaders believe a recession will hit within the next 12 months, according to a KPMG survey. Against this background, spending on corporate governance, social and environmental goals, which are not fully defined by the regulatory framework, is being reduced, which is reflected in KPMG data. In addition, there are some signs of investor skepticism about the aforementioned targets.

Costs for corporate governance, social and environmental goals are reduced.

KPMG’s picture is based on responses from 1,325 executives across industries and countries, and the study was conducted between July 12 and August 24. Member-managed groups have at least $500 million in annual revenue, and a third maintain revenues in excess of $10 billion.

In addition to KPMG, Capital.com, a London-based stockbroking and brokerage platform that has a large retail clientele, has produced a similar study. Her own findings showed that neither brokers nor investors pay attention to the above three goals. Of the 1,800 brokers and investors surveyed, 52% said they have never chosen stocks or traded on corporate governance, environmental, or social equity grounds. Nearly half, or 46%, said they didn’t know how to do it, and 12% said the investment was too expensive.

In the US, more than a dozen traditionally Republican states are trying to prevent the financial industry from integrating governance, environmental and social justice into their actions as they try to protect the military and oil industries. A series of new rules are intended to change the business and investment landscape in these states so that business leaders cannot ignore the three goals, as is the case with relevant rules and directives in the EU.