To say the ESG landscape is fast-evolving and often in flux, is likely an understatement. Since our previous survey published in December 2022, we have seen significant change in the global sustainability landscape, including the landmark SEC climate ruling, mandatory climate reporting requirements for both public and private companies, and shifts in how many organizations are approaching ESG planning and integration.
From a strategic focus on capacity building to navigating the challenges of poor quality ESG data, our 2024 report provides details around surveyed companies’ current ESG mindset and some of the internal and external benefits they’re seeing come to light by implementing leading practices sooner. Unlock ESG insights by diving into this report and its findings.
The path to ESG progress
Main takeaway 1
It has been a year of ESG capacity building for organizations. Cross-functional ESG working groups, an uptick in chief sustainability officer (CSO) and ESG controller roles, and a hiring of new resources, including ESG in disclosure committee reviews, indicate that companies are continuing to strategically integrate ESG into their workflow as well as shore up on talent to meet the demand. Ninety-eight percent of executives are reporting some level of progress toward their sustainability goals and targets in the past year.
Main takeaway 2
Organizations are investing in sustainability reporting as they recognize internal and external benefits in doing so. Greater efficiencies, lower risk, and enhanced trust with stakeholders were recognized by more than half (51%) of survey respondents as the top three internal business benefits companies expect to see by investing in sustainability reporting. Brand reputation, talent attraction, and higher pricing abilities top the charts for expected external business outcomes.
Main takeaway 3
Despite the significant progress being made, many report being challenged by poor data quality, and few companies are currently preparing and disclosing Scope 3 GHG emissions. Even as companies put resources and arrangements in place for ESG reporting, they’re still facing ongoing complexities and challenges. More than half (57%) cite data quality as the top challenge with ESG data for their company, and 88% report it as one of the top three challenges. Most executives (81%) also report documentation and sign-off as a top challenge.
In the rapidly changing ESG landscape, we’ve seen considerable strides among businessesKristen Sullivan, Audit & Assurance Partner
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.
Sustainability and ESG Services
Deloitte & Touche LLP
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ESG SelfAssess™
For both public and private companies, ESG readiness is a unique and fast-evolving journey. Our ESG SelfAssess™ tool is here to advise you as you navigate yours. Explore how to open the door for a more defined and enhanced reporting process.
ESG SelfAssess™
For both public and private companies, ESG readiness is a unique and fast-evolving journey. Our ESG SelfAssess™ tool is here to advise you as you navigate yours. Explore how to open the door for a more defined and enhanced reporting process.
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