Reporting Quality of ESG Issues High on Boardroom Agendas

A new Deloitte survey of 300 senior finance, legal, and sustainability executives shows that the growing expectation for high-quality ESG reporting information is high on the boardroom agenda.

Findings from Deloitte revealed that leaders are working toward “more reliable and timely” data, with investments in technology, controls design and implementation resources, and a “robust, integrated strategy to meet the growing expectation for high-quality ESG reporting information”.

More than half of senior executives surveyed, at 57%, said that data availability (access) and data quality (accuracy/completeness) remain their most significant challenges concerning ESG data for disclosure.

A substantial majority of senior executives, at 82%, also believe they will need additional resources to generate ESG disclosures that meet the information needs of “critical” stakeholders.

Accurate ESG reporting requires the effective use of technology, Deloitte said. Yet, 92% of survey respondents believe that their organization needs to invest more in technology to address the demand for consistent and reliable measurement, reporting, and disclosures.

The survey found that only 21% of companies surveyed have an ESG council or working group at the moment, that is able to “drive strategic action” in ESG performance areas. However, this is set to improve as 57% of survey respondents are “actively working” to establish one.

Jon Raphael, national managing partner – transformation and assurance (ESG) at Deloitte & Touche LLP, said: "As companies rise to meet the moment, they will need the right mix of skilled professionals, streamlined processes, and dynamic technology to address stakeholder expectations for high-quality ESG disclosures that instil trust."

Earlier this month, Credit Suisse announced it would halve its emissions financing. The Swiss bank set a new target to decrease its exposure to financing oil and gas within 10 years.