Survey: Over 70% of Execs Lack Confidence in ESG Data Reported to Stakeholders

More than 70% of executives surveyed across multiple industries and regions reported that they lack confidence in their organizations’ own ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting, and nearly two thirds feel unprepared to meet ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. goals and disclosure requirements, according to a new study released by business data and reporting solutions provider Workiva.

For the report, “ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Reporting Global Insights 2022,” Workiva commissioned a survey of 1,300 senior decision makers at businesses with over 250 employees, across a broad range of sectors and 13 global markets. Each respondent to the survey participated in their organizations’ ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting and strategy.

The study comes as companies around the world prepare to meet increasing demands by stakeholders including investors and customers for greater transparency into their sustainability-related risks and impact, and regulators work to implement mandatory ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. disclosure systems.

Mandi McReynolds, Head of Global ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. at Workiva, said:

“Stakeholders are calling for more detailed and uniform data related to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.. With the recent Sustainable Finance Disclosure Regulation (SFDR) directive in Europe, the ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. disclosure rule proposed by the SEC in the U.S., and the Singapore Exchange’s recommended 27 core ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. metrics, the ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting environment is becoming more complex for organizations.”

The survey indicated that respondents generally see significant benefits from ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting, with most stating that they already see positive impact in areas including customer retention and recruitment (72%), improved investor and stakeholder relations (70%) and improved employee recruitment (69%).

While the benefits of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. disclosure are well understood, however, many organizations are still in the early staged of ramping up sustainability reporting, and significant investments will be required in order to meet data collection and reporting needs. 58% of respondents reported that their organizations only began formal ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting within the past 3 years, while another 14% have yet to release a formal report.

Technology investments will be needed in order to help improve the organizations’ ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting capabilities, with 85% of respondents agreeing that technology is important for mapping disclosures to regulations and framework standards, but over half (55%) reporting that they currently lack sufficient tools to provide the right ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data.

Improving reporting on environmentalEnvironmental criteria consider how a company performs as a steward of nature. data appears to be top of mind for the decision makers, with the 2 most cited top challenges facing their organizations regarding ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting including calculating greenhouse gas protocols to measure scope 1, 2 and 3 emissions, and achieving investor-grade carbon accounting level of data. Similarly, the respondents reported that the largest chunk of their ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. budget over the next 12 to 18 months will be dedicated to environmentalEnvironmental criteria consider how a company performs as a steward of nature. factors (43%), followed by socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. (29%) and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. (28%) factors.

Julie Iskow, President & COO at Workiva, said:

“ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting requirements are constantly evolving and businesses are faced with increasing complexity and risk when consolidating disparate financial and non-financial data to cohesively report on their ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. performance to stakeholders. The survey results indicate how ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. practitioners from a range of industries across North America, Europe, and APAC are tackling the challenges and opportunities around ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting.”

Click here to access the Workiva study.

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