Recent ESG Survey Shows Businesses are Increasingly Complying with the EU’s CSRD
Overview:
Recently, Workiva released a 2024 ESG Practitioner Survey that revealed professionals' readiness to tackle challenges posed by the EU's Corporate Sustainability Reporting Directive (CSRD). Despite concerns about data accuracy and regulatory adaptation, a significant number of companies, including those not mandated by the CSRD, plan to align their reporting with the new standards, driven by perceived benefits like competitive advantage and improved decision-making. The survey showcases the growing emphasis on investing in technology for ESG initiatives, with an eye on data management and the potential of generative AI to streamline sustainability reporting. Overall, the findings illustrate regulation as a catalyst for innovation in corporate transparency, with companies increasingly embracing assured integrated reporting as the new norm.
Summary:
Insights from Workiva's 2024 ESG Practitioner Survey show the growing importance for the intersection of technology to help supplement sustainability reporting. The survey also focused on the challenges and responses of professionals engaged in corporate reporting, particularly concerning the EU's Corporate Sustainability Reporting Directive (CSRD). It highlights that while the majority of professionals express confidence in their ESG data accuracy, there's widespread anticipation of challenges in adapting reporting processes to meet evolving regulatory standards. Specifically, over 80% foresee difficulties in collecting accurate data to comply with the CSRD, which aims to broaden sustainability disclosures and introduce more detailed reporting requirements.
Despite these challenges, a significant portion of companies, including those not obligated by the CSRD, plan to align their reporting with the new regulation. This proactive approach is driven by the perceived benefits of improved ESG reporting, with many professionals citing competitive advantages and better decision-making enabled by integrated financial and sustainability data. The survey also underscores the belief that assurance requirements of new regulations will enhance accountability and performance, with a majority stating that obtaining assurance over ESG data increases the likelihood of achieving organizational goals.
Looking ahead, there's a clear indication of increased investments in technology for ESG initiatives, with a focus on data compilation, collaboration, analysis, and validation. Notably, respondents expect generative AI solutions to play a significant role in making sustainability reporting more efficient in the coming years. Overall, the article portrays regulation as a catalyst for innovation in sustainability disclosures, with companies embracing assured integrated reporting as the gold standard in corporate transparency. This reflects a broader trend of adaptation and commitment within the corporate reporting landscape towards meeting evolving ESG standards and leveraging technological advancements.
Source: https://www.esgtoday.com/83-of-companies-say-collecting-accurate-data-for-csrd-reporting-requirements-will-be-a-challenge-workiva-survey/
