According to a recent Workiva survey, executives worldwide increasingly want their companies to be environmentally, socially, and responsibly focused, and 85 percent of the respondents claimed to have already planned disclosing GHG emissions, despite of any kind of political or regulatory condition. That demonstrates how such integrated reporting in finance, as well as in the environment, societies, and governance fields-ESG data could indeed serve the interests of executives toward profitable growth and performance.
This global leader survey of 1,600 respondents reveals that, for more executives, the growing mind-set is one that fosters proactive resilience and adaptability in strategy-making – even in uncertain geopolitics. According to Mandi McReynolds, Vice President of Global ESG and Chief Sustainability Officer at Workiva, this represents a new state where business leaders are now driving towards long-term sustainability with a beneficial financial outcome through the channel of integrated reporting.
One of the most important findings from the survey is that nearly all executives (97%) believe in the value of integrated financial and ESG reporting. They see it as a tool not only for tracking environmental impact but also for identifying performance gaps and uncovering new opportunities for growth. This approach is helping companies to better align their financial goals with their environmental and social responsibilities.
In addition to reporting on emissions, 83% of executives plan to disclose climate-related risks, with 82% intending to report on the material impacts of these risks. This widespread commitment to transparency reflects a broader trend in the business world where sustainability is becoming a core component of corporate strategy. Even amidst changing global politics and different regulatory environments, business leaders are eager to retain trust with investors, customers, and other stakeholders through full and accurate ESG disclosures.
The survey also reveals that the regulatory environment surrounding ESG reporting is likely to expand in the near future. Executives in countries such as Brazil and Singapore are particularly looking forward to new or expanded ESG regulations. In Brazil, 78% of executives expect regulatory changes, while in Singapore, 80% anticipate similar developments. Even in countries like the United Kingdom, where 60% of executives foresee regulatory growth, companies are proactively aligning their reporting with existing frameworks, such as the European Union’s Corporate Sustainability Reporting Directive (CSRD). In fact, 75% of companies worldwide, even without a direct compliance requirement, plan to align their ESG reporting with the CSRD, further emphasizing the importance of standardization and consistency in sustainability practices.
Investor demand for regulated sustainability disclosures is also on the rise. According to the survey, 96% of institutional investors agree that regulated ESG disclosures improve their investment decisions, up from 92% last year. This is a trend where increasing popularity for transparency among investors has pressed companies to hasten efforts on sustainability and embed it in business strategies. These factors now hold growing influence in the decisions to be made when making an investment, because there’s rising perception of inter-link between financial goals and sustainability imperatives.
In a world where businesses have to face the headwinds of inflation, interest rate volatility, and policy shifts, there is a critical need for transparent, standardised sustainability reporting. This survey outcome marks the path to a future where business performance is closely linked to social, environmental, and governance factors. Companies increasingly recognize that the mitigation of climate-related risks, like other ESG factors, enhances resilience but also adds long-term value.
Workiva’s survey shows the rapid evolution of the business environment in which executives fully believe in sustainability reporting; and, in fact, more for strategic growth rather than compliance with regulations, more for investor confidence. Increasingly, sustainability has come to be at the very center of business strategies; thus, companies failing to adopt integrated reporting would not only be left behind in this regard but also at risk in the years ahead.
These trends will be further analyzed in Workiva’s 2025 Executive Benchmark Survey, which is scheduled to be published in February 2025, and will offer deeper insights into how executives around the world are adapting to the evolving regulatory and investor demands for transparency and sustainability.