A new survey from Deloitte has highlighted significant trends among public companies gearing up for enhanced ESG disclosures.
According to ESG Today, the study surveyed 300 executives across diverse sectors and found that an overwhelming 99% are bracing for stricter disclosure demands stemming from various new regulations such as the EU’s CSRD and the SEC’s climate disclosure rule.
A notable 74% of companies are poised to invest in advanced technologies and tools to enhance their ESG disclosure capabilities within the next year. This move is largely driven by the necessity for higher quality data, which remains a primary challenge for 88% of respondents. Furthermore, the survey revealed a strategic shift towards formalising ESG responsibilities within companies’ executive ranks, with an increase in the number of Chief Sustainability Officers (CSOs) tasked with managing ESG disclosures.
The establishment of cross-functional ESG teams is proving to be a crucial strategy for companies, with 52% already having these teams in place and 46% planning to do so. Companies with such teams report more substantial progress towards their sustainability goals, with 38% describing their advancements as “significant.” This is in stark contrast to just 10% of companies without these teams reporting significant progress.
Additionally, the survey indicated a rise in the creation of new roles specifically designed to handle the increasing load of ESG reporting and compliance. Over three-quarters of respondents have created new positions to address upcoming ESG regulations, reflecting a proactive approach in organizational adaptation to meet these demands.
Deloitte Audit & Assurance Partner, Sustainability and ESG Services Kristen Sullivan said, “The creation of dedicated ESG teams, the rise in specialized roles, and investments in sustainability reporting, all indicate a strategic shift toward embedding sustainability into their core operations. While challenges still exist, the commitment to sustainability is becoming more evident as companies continue to unlock the potential of ESG insights.”
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