According to a recent survey conducted with ESG professionals, a staggering 90% of respondents believe that strong reporting and data management can significantly boost competitiveness. The survey highlights the importance of Environmental, Social, and Governance (ESG) factors in business operations and decision-making.
The survey, conducted by Workiva, the world’s leading cloud platform for transparent reporting, spanned 13 countries and gathered responses from over 1,300 participants. The results underscore the increasing significance of ESG factors in business operations and decision-making. Furthermore, over half of the respondents identified strong reporting as a key competitive advantage.
ESG practitioners recognise the value of transparent and robust reporting to attract investors, retain customers, and ultimately gain a competitive edge in the market. Effective communication of environmental and social initiatives and solid governance practices is becoming increasingly vital for businesses in various sectors.
The findings align with the global shift towards sustainable business practices. Investors and stakeholders emphasise ESG metrics more, viewing them as indicators of a company’s long-term viability and commitment to responsible business conduct. As companies recognise the potential benefits of integrating ESG considerations into their strategies, the demand for accurate and comprehensive reporting is rising.
The growing need for ESG reporting is further supported by the increasing number of regulatory bodies introducing new disclosure requirements. The EU’s Markets in Financial Instruments Directive (MiFID II) requires listed companies to disclose their approach to integrating ESG factors into their strategies and operations. Similarly, other countries have introduced similar legislation, such as the International Sustainability Standards Board in the US and the Monetary Authority of Singapore.
The survey also reveals that many organisations still need to address reporting challenges. Issues such as data collection, verification, and standardisation are common obstacles that must be addressed to unlock the full potential of ESG reporting and impact on competitiveness. As ESG reporting frameworks continue to evolve, companies must navigate these challenges by investing in reliable data management systems and adopting internationally recognised reporting standards.
Furthermore, this survey underscores the need for collaboration and knowledge sharing among ESG practitioners. By sharing best practices, experiences, and insights, companies can overcome reporting challenges and accelerate progress towards sustainable and responsible business practices.
ESG reporting is an emerging form of corporate communication that aims to inform stakeholders about how companies manage environmental, social, and governance (ESG) risks and opportunities. ESG reporting enables companies to disclose their performance on ESG issues, explain how they are managing these issues, and demonstrate the value of their approach in terms of economic performance. This survey explores the benefits and challenges associated with ESG reporting and its impact on competitiveness.
In conclusion, the survey findings clearly demonstrate that ESG practitioners recognise the crucial role of reporting and data management in enhancing competitiveness. As more businesses focus on integrating ESG considerations into their strategies, the ability to effectively communicate and showcase sustainable practices will become a key differentiator in the market. Companies must invest in robust reporting systems, overcome reporting challenges, and collaborate with industry peers to stay ahead in today’s increasingly ESG-conscious business landscape.
Source: https://www.workiva.com/resources/2023-global-esg-practitioner-survey
