According to a new survey by Workiva, sustainability regulations are driving a transformation in corporate reporting.
A survey shows that companies are planning to comply with the CSRD voluntarily, and professionals believe that integrated reporting has a positive effect on performance.
An independent survey commissioned by Workiva Inc. found that 81% of companies not subject to the European Union’s Corporate Sustainability Reporting Directive (CSRD) plan to align their sustainability disclosures with its requirements. Workiva Inc. (NYSE:WK). The third annual 2024 ESG Practitioner Survey surveyed over 2,000 people involved in corporate reporting, including finance and accounting, sustainability, risk, and internal audit professionals in North America, Europe, and Asia.
“The adoption of the CSRD marked the first major regulation calling for integrated financial and sustainability disclosures with third-party assurance. Companies around the world are gearing up for their first mandated CSRD reports in 2025, indicating that the CSRD’s impact goes beyond those subject to the regulation,Paul Volpe, Senior Vice President of Growth Solutions at Workiva, noted, “The CSRD has sparked a global shift toward assured integrating reporting, with business leaders recognizing the market demand for contextual, transparent, and credible data that aligns with stakeholder expectations.Professionals are embracing change despite challenges.”
Complying with new mandates is the top challenge facing reporting teams, but most practitioners see value in reporting, with 88% agreeing that a strong ESG reporting program gives their organization a competitive advantage.
Respondents also believe that integrated financial and sustainability data leads to better decision-making and improves a company’s financial performance. Furthermore, they think integrated reporting has a positive impact on long-term value creation and increases the likelihood of achieving goals.
Institutional investors in Workiva’s 2024 Executive Benchmark on Integrated Reporting shared similar sentiments. The 2024 ESG Practitioner Survey showed that regulation is driving innovation, making assured integrated reporting the gold standard in corporate reporting.Paul Dickinson, a member of Workiva’s ESG Advisory Council and the Founder Chair of CDP, remarked, “Regulation is serving as a catalyst for innovation. Companies are improving their sustainability disclosures and making assured integrated reporting the gold standard in corporate reporting.
“Regulation is pushing companies to improve their sustainability disclosures, but it also poses significant hurdles for their teams.83% of people surveyed agree that it will be difficult for their organization to collect accurate data to meet the CSRD requirements. This suggests that professionals think that regulations will make sustainability reporting more complicated, and reporting processes need to improve to meet new regulatory requirements.Transformation of Reporting Processes Underway”
Professionals are interested in using technology to simplify reporting processes, including adopting solutions that use generative AI. More than 8 in 10 agree that generative AI will help them do their jobs more easily (82%) and make sustainability reporting more efficient (85%) in the next five years.
In the short term, around 9 in 10 professionals say their companies plan to invest more in technology for sustainability initiatives in the next three years (89%) and that they are investing in technology to enhance collaboration among reporting teams (92%). This makes sense, considering that 78% of respondents now say that three or more internal teams are involved in their company’s ESG reporting processes, up from 71% in the 2023 ESG Practitioner Survey, and 85% agree that integrating finance, sustainability, and compliance processes allows individuals to spend more time on value-added work.
Volpe explained, “Ensuring integrated reporting goes beyond just complying with regulations; it is necessary for showing performance and value in a competitive environment. Business leaders and their teams understand that this is a transformative opportunity that requires serious commitment, and they are preparing to invest in reporting that is integrated across business lines, accessible to all stakeholders, and driven by innovation.”
Sustainability Regulation Propelling Transformation in Corporate Reporting, According to New Survey by Workiva Survey Finds Companies Planning to Voluntarily Comply With the CSRD; Practitioners Believe Integrated Reporting Has Positive Impact…
Volpe continued, “Assured integrated reporting is about more than compliance, it is a necessity for demonstrating performance and value in a competitive landscape. Business leaders and their teams understand this is a transformational opportunity that demands serious commitment and they are preparing to invest in reporting that is integrated across business lines, accessible to all stakeholders, and powered by innovation.”
