Most Companies Unprepared for Upcoming Climate Reporting Rules; Accenture Survey

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Upcoming Climate Reporting Rules

Upcoming Climate Reporting Rules:

A new survey by global professional services firm Accenture reveals a significant gap between the growing pressure on companies to address sustainability and their preparedness to meet upcoming climate reporting requirements.

The report, titled “From Compliance to Competitive Advantage,” surveyed over 730 CFOs and senior finance executives from large companies across 11 countries and 15 industries. The findings highlight a disconnect between the rising focus on ESG issues and the ability of companies to report and manage them effectively.

Key Findings:

Pressure Builds, Readiness Lags: While nearly 85% of respondents expect mandatory sustainability reporting to increase within three years, only 22% of CFOs feel well-prepared to disclose climate-related risks and opportunities with external assurance.

Stakeholder Pressure Mounts: Over 80% of executives experience pressure from stakeholders like regulators, boards, and shareholders to take action on sustainability.

A Spectrum of Preparedness: The survey identified various preparedness levels across companies. 12% were categorized as weak, 73% at a moderate level, and 15% with strong capabilities.

Sustainability as Opportunity: The study found a strong link between companies with robust ESG measurement and management and those viewing sustainability as a potential growth driver.

According to co-authors Stephanie Jamison, Jens Laue, and Michela Coppola from Accenture, “CFOs who lead by example and take a strategic approach to building ESG measurement and management capabilities will likely gain a competitive advantage and accelerate their company’s sustainability journey.”

The report emphasizes transforming ESG data into actionable insights that inform business decisions. Companies that can achieve this will be better positioned to identify opportunities, overcome challenges, and ultimately create value through improved decision-making.

The survey underscores the urgency for companies to bridge the gap between rising ESG expectations and their current capabilities. Embracing a proactive approach to sustainability can unlock not only compliance but also innovation and growth opportunities.

Source: ESG Time

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