Ninety-nine per cent of business executives are bracing for stricter ESG data disclosure demands following the arrival of a wave of new regulations including the EU’s Corporate Sustainability Reporting Directive and the SEC’s climate disclosure rule.
This is according to results of a new Deloitte survey this week taking a deep dive into the sustainability trends among 300 executives across diverse business sectors.
Among its key findings, it was discovered that 74% of companies are now poised to invest in advanced technologies and tools to enhance their ESG disclosure capabilities within the next year. This move has largely been driven by the need for higher quality data – something that remains a primary challenge for 88% of businesses.
The same survey revealed a notable shift among businesses now formalising ESG responsibilities among employees, citing a growing number of Chief Sustainability Officers now being tasked with managing ESG disclosures.
This stands in stark contrast with findings across the brand and licensing industry within which – according to the results of Products of Change’s 2023 Sustainability in Licensing Conference Survey – 50% of industry executives believes they are still missing a ‘top-down strategy’ for sustainable development within their business.
The good news is that the majority of licensing industry respondents (82.61%) feel encouraged by the senior management buy-in to start building strategies into their operations. However, lack of ownership to drive progress as well as the lack of resources and headcount stand as firm barriers to that progression.
In contrast, the Deloitte research found that 52% of respondents have ESG teams in place while 46% are now planning to put those teams together. Those companies with teams in place are now reporting more substantial progress towards their sustainability goals, with 38% describing their advancements as ‘significant’.
Additionally – and as reported by FinTech – the Deloitte survey indicated a rise in the creation of new roles specifically designed to handle the increasing load of ESG reporting and compliance. Within the licensing industry, and according POC’s own SiLC 2023 survey, 56% of respondents simply feel that not enough work is being undertook by within their business to drive sustainable practices.
Around 76% of SiLC survey respondents believe their business could be doing more to drive change with calls for internal subject matter experts and people to help train clients and deliver engagement projects.
Speaking on the Deloitte survey results, Kristen Sullivan, Deloitte Audit and Assurance partner for sustainability and ESG services, said: “The creation of dedicated ESG teams, the rise in specialised 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.”
