Investors increasingly expect reliable, transparent sustainability information in corporate reporting. Yet, findings from EY’s recent Global Corporate Reporting Survey suggest a gap between these expectations and current practices, as many finance leaders express doubts about the credibility of their own sustainability disclosures.
This article explores the key findings of the report and uncovers practical strategies to tackle the issues it reveals.
The survey revealed that over half (55%) of finance leaders worry that their industry's sustainability reports risk being perceived as "greenwashed." This concern points to the complexity and relative immaturity of sustainability reporting, which is still evolving when compared to the stringent methods and controls in financial reporting.
Many companies are using varied voluntary frameworks, and while targets and disclosures may be set in good faith, the processes and data may not yet meet the standard required for credible reporting, which can lead to greenwashing accusations.
To address these challenges, many companies are establishing an ESG (Environmental, Social, and Governance) controller role within their finance functions. This role is intended to bring oversight to sustainability reporting, ensuring data accuracy, robust controls, and aligned reporting processes.
EY’s survey found that 36% of finance leaders already have an ESG controller in place, and another 58% plan to establish the role, with nearly a third expecting to fill it within the next year.
Data reliability remains a significant barrier to credible sustainability reporting, with finance leaders identifying inadequate policies, processes, and controls as top challenges. This is particularly evident in areas requiring precise data, such as Scope 3 greenhouse gas emissions and biodiversity disclosures. Companies face difficulties not only in gathering accurate data internally but also in sourcing reliable information across extended supply chains.
As a result, many companies feel pressured to delay disclosures or “green hush” by keeping ambitious targets private, wary of regulatory and reputational risks.
To address these gaps, companies will likely need an integrated approach that combines recognised standards, compliance with emerging regulations, reliable data, and skilled talent to build credible reports. FutureTracker’s experts provide the essential support needed for organisations navigating these demands.
From understanding and aligning with relevant standards and regulations to employing tools that gather reliable, meaningful data, we help companies develop the foundational processes needed for credible sustainability reporting.
One effective solution for building trusted sustainability disclosures is the GRI (Global Reporting Initiative) framework, a globally respected and widely adopted standard for transparent sustainability reporting. Through FutureTracker’s GRI service, businesses can gain a structured, recognised approach to reporting that ensures comparability and transparency while meeting stakeholder expectations for environmental, social, and governance metrics.
Our dedicated team offers guidance throughout the reporting process, from initial data collection and goal setting to tracking progress and refining disclosures, making it easier for businesses to enhance their reporting quality and build trust with investors. With FutureTracker, organisations can not only meet today’s regulatory standards but also lead the way in transparent, impactful sustainability reporting that resonates with both stakeholders and the broader public.
If you’d like to learn more about FutureTracker, get in touch with us at enquiries@futuretracker.com or learn more about our plans and pricing here.
