Firms Embrace ESG Reporting Amid Growing Complexity

Corporates are investing greater resources into ESG reporting, according to compliance platform provider Workiva’s ‘2023 Global ESG Practitioner Survey. Seventyone percent of the 900+ respondents said three or more internal teams contribute to ESG reporting in their organisations. Additionally, 74% have appointed at least one employee to oversee ESG reporting and initiatives, marking a 6% increase from the previous year. The same percentage of respondents anticipate that their organisations will need to comply with two or more global regulations. Alex Edmans, Professor of Finance at London Business School, who developed the survey said: “What struck me from the survey results is the dichotomy between practitioners of all levels agreeing they find value in ESG reporting while managers in the trenches are saying their companies are not applying the same diligence to ESG reporting as they do to financial reporting.” While 62% of C-level executives strongly believe their companies prioritise ESG reporting as much as financial reporting, only 32% of managers and senior managers concur, suggesting potential unpreparedness for emerging regulations. Further, a new report from software provider Rimm Sustainability found a significant level of commitment to sustainability practices amongst UK SMEs.  Fifty-eight percent of SME executives said they recognise that sustainability reporting can help them to meet the evolving needs of stakeholders and 41% believe it can help attract investors. As a result, 80% of the SMEs surveyed said their organisation is committed to sustainability. 

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