Highlights from EY’s latest global survey on reporting

Hope you are doing well and welcome back to our brief thoughts on ESG.

This week, we want to share thoughts from a EY’s recently published 2024 EY Global Corporate Reporting Survey. In it, EY surveyed over 2,000 finance leaders and 815 institutional investors globally. The research revealed deep concerns about sustainability and transparency. See some of the highlights here, but we recommend a full read for those involved in reporting efforts in your organizations.

Some highlights from the report

• “The credibility of nonfinancial reporting is being undermined by greenwashing perceptions.”

• “Only around half of finance leaders and investors surveyed think that corporates will likely achieve their stated sustainability targets (47% for finance leaders; 53% for investors).“

• “More than half of finance leaders surveyed (55%) feel sustainability reporting in their industry faces the risk of being seen as including “greenwashing” elements.”

• “More than two-thirds of finance leaders surveyed say investors ask more questions about nonfinancial drivers of value now than two years ago.”

• “Fewer than half of finance leaders think it’s “very likely” that their organization will deliver against their major sustainability priorities and meet stated targets, such as achieving net zero on time.”

• “Almost three-quarters of investors surveyed (74%) say that external assurance by an independent third party would boost their confidence in the credibility and accuracy of a company’s nonfinancial reporting.”

• “Forty-three percent of investors surveyed employ full-time dedicated sustainability analysts…Twenty-five percent of investors surveyed see the number of sustainability analysts in their organization “increasing a lot” over the next two years.” 

In an increasingly uncertain and interconnected world, predicting the future has grown more complex for investors. Economic volatility, geopolitical tensions, technological disruptions, and the escalating impacts of climate change have created a challenging landscape for businesses and financial markets alike. Against this backdrop, companies face the dual imperative of navigating short-term turbulence while building the resilience needed to sustain long-term growth.

This balancing act demands more than just strategic agility; it requires a deep commitment to sustainability as both a business imperative and a societal responsibility. Climate risks, resource constraints, and shifting stakeholder expectations are reshaping the priorities of organizations, making it essential for them to integrate environmental, social, and governance (ESG) considerations into their core strategies.

For investors, the stakes are equally high. They need transparency and a clear understanding of how companies plan to deliver enduring value while managing these multifaceted risks. Organizations must articulate compelling narratives that go beyond financial metrics, highlighting their ability to innovate, adapt, and contribute to a sustainable future. By demonstrating how they align long-term value creation with sustainability commitments, companies can build trust, attract capital, and secure their place in a rapidly evolving global economy.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.

Best,

Marimar

CEO, Miranda ES