Deloitte has released its 2024 Sustainability Action Report, sharing survey findings on ESG disclosure and preparedness.
The survey was commissioned in January 2024 and collected responses from 300 executives across industries at publicly owned companies with a minimum annual revenue requirement of $500 million or more.
The findings reveal that mandatory reporting requirements are prompting companies to strengthen their focus on integrating sustainability into strategic planning, risk management and data governance.
Specifically, the survey found that 98 per cent of those surveyed reported having seen progress toward their sustainability goals and targets, where established, in the last year.
However, just 25 per cent report making significant progress.
It also found that 98 per cent report having an established ESG council or working group that meets at least quarterly, and more than two in five (43 per cent) are meeting at least once a month.
Companies with an already established cross-functional ESG council or working group were also found to be “far more likely” to make significant progress—38 per cent to just 10 per cent—of those without an ESG council or working group.
In 2024, 99 per cent of respondents indicated that they are preparing for increased disclosure requirements.
It was also found that 74 per cent are likely to invest in new technology or tools to enable more timely and higher-quality disclosure.
Likewise, 77 per cent report creating new roles and responsibilities to support the preparation and execution of enhanced reporting processes and controls to meet regulatory requirements in 2024.
Fifty-seven per cent of respondents cite data quality as their company’s top ESG data challenge, and 88 per cent report it as one of the top three challenges for their company.
Most executives (81 per cent) also report challenges related to documentation in their top three, including important control steps such as review, sign-off, and certification of ESG data—key processes and internal controls that are typically well-established in financial reporting but generally less established in sustainability reporting, the report said.
Moreover, while most respondents are reporting on Scope 1 and 2 GHG emissions, few are reporting on Scope 3 GHG emissions— just 15 per cent.
Read the full Sustainability Action report here.