2024 Sustainability Action Report

It has been a year of ESG capacity building for organizations. Cross-functional ESG working groups, an uptick in chief sustainability officer (CSO) and ESG controller roles, and a hiring of new resources, including ESG in disclosure committee reviews, indicate that companies are continuing to strategically integrate ESG into their workflow as well as shore up on talent to meet the demand. Ninety-eight percent of executives are reporting some level of progress toward their sustainability goals and targets in the past year.

Organizations are investing in sustainability reporting as they recognize internal and external benefits in doing so. Greater efficiencies, lower risk, and enhanced trust with stakeholders were recognized by more than half (51%) of survey respondents as the top three internal business benefits companies expect to see by investing in sustainability reporting. Brand reputation, talent attraction, and higher pricing abilities top the charts for expected external business outcomes.

Despite the significant progress being made, many report being challenged by poor data quality, and few companies are currently preparing and disclosing Scope 3 GHG emissions. Even as companies put resources and arrangements in place for ESG reporting, they’re still facing ongoing complexities and challenges. More than half (57%) cite data quality as the top challenge with ESG data for their company, and 88% report it as one of the top three challenges. Most executives (81%) also report documentation and sign-off as a top challenge.