A recent Deloitte survey reveals that 74% of public companies plan to invest in sustainability reporting technology and tools within the next year. With the increasing demand for enhanced Environmental, Social, and Governance (ESG) disclosures, nearly all companies are preparing to meet these evolving requirements.
Key Findings from the “2024 Sustainability Action Report”:
- Growing Importance of ESG Teams: 52% of companies have cross-functional ESG teams, with 98% of these teams meeting at least quarterly.
- Enhanced Executive Oversight: The role of the Chief Sustainability Officer (CSO) is expanding, with 55% of respondents reporting CSO management responsibility for ESG disclosure.
- Top Challenges: Data quality remains the biggest hurdle, cited by 88% of executives.
Expected Benefits
- 53% expect reduced risk.
- 52% foresee increased efficiencies and ROI.
- 51% anticipate improved talent attraction and retention.
- 51% believe in enhanced brand reputation.
Addressing Data Quality Challenges
Accurate utility bill management plays a critical role in carbon accounting and financial-grade emissions reporting. Utility bills provide reliable data for Scope 2 emissions, which constitute a significant portion of global greenhouse gas (GHG) emissions. This data is consistently available, includes detailed line items for precise reporting, and is easier to measure compared to other data points.
By leveraging comprehensive utility bill management services, companies can:
- Ensure consistent and accurate data collection for Scope 2 emissions.
- Benefit from detailed line items that facilitate precise reporting.
- Simplify the measurement process, reducing complexity in ESG data management.
Strategic Shift Towards Sustainability
Kristen Sullivan of Deloitte & Touche LLP notes, “The creation of dedicated ESG teams, the rise in specialized roles, and investments in sustainability reporting all indicate a strategic shift toward embedding sustainability into core operations.” This reflects a broader trend of integrating sustainability into business operations.
As companies navigate the evolving ESG landscape, the focus on accurate data and effective reporting mechanisms will be essential in achieving their sustainability goals. The “2024 Sustainability Action Report” underscores the importance of these efforts and provides a roadmap for companies aiming to enhance their ESG disclosures and overall sustainability performance.
