97% of Executives Believe Sustainability Reporting Will be a Business Advantage, Says Workiva
Companies that integrate financial and sustainability data are gaining a competitive edge, according to a new survey by Workiva, a cloud platform for integrated reporting.
As much as 97 per cent of executives believe sustainability reporting will be a business advantage within two years, while 96 per cent of investors agree it strengthens financial performance, according to the 2025 Executive Benchmark Survey from Workiva.
Through the survey of 1,600 global leaders, Workiva found that, despite policy uncertainty, leaders are not changing course. Eighty-five per cent of executives plan to move forward with climate disclosures, regardless of political shifts.
Meanwhile, over 10,000 companies and institutions (a 29 per cent year-over-year increase) have set science-based decarbonisation targets or committed to doing so, while 24 US states and over 190 countries remain aligned with the Paris Climate Agreement, signalling that long-term commitments are holding firm.
“CEOs are making choices today that will shape their business for years to come,” explained Julie Iskow, CEO of Workiva. “Assured financial and sustainability reporting is not simply a compliance play, it’s a strategic approach to mitigate risk, fuel performance, and strengthen investor confidence.”
Bolstering investor confidence
“The market has spoken and forward-thinking companies aren’t waiting – they’re taking action and committing to science-based targets and stronger disclosures,” added Tensie Whelan, professor of practice for business and society and founding director of the NYU Stern Center for Sustainable Business. “They understand that sustainability and integrated reporting isn’t just about risk management, it’s a competitive advantage that attracts capital and drives long-term success.”
This strategy certainly aligns with the survey’s findings. In fact, 92 per cent of investors rank data accuracy as a foundational requirement to effectively evaluate organisations, while 93 per cent of institutional investors are more likely to invest in companies with integrated financial and non-financial reporting.
However, nearly a quarter of executives do not fully trust their financial data. With this in mind, the business case for integrated data and reporting appears stronger than ever. “By making our operations more sustainable, we’re able to increase efficiencies that impact our bottom line. It’s a direct cause-and-effect relationship,” said Allyson Anderson Book, CSO at energy tech company Baker Hughes. “As we continue to enhance our sustainability efforts and move forward with climate disclosures and sustainability reporting, we believe our investor-grade integrated ESG data and reporting demonstrates our long-term, transparent approach to our investors.”
Riding the regulatory wave
Workiva also revealed that many European leaders see regulatory shifts as an opportunity – as new rules push firms to engage with sustainability reporting. Ida Bohman Steenberg, chief sustainability officer of Tietoevry, a Finnish IT and product engineering service provider, believes that the Corporate Sustainability Reporting Directive (CSRD) requiring companies to report on their environmental and social impact is a “game changer”.
“The CSRD empowers us to manage and report on our sustainability ambitions and results on a new level,” he explained. “The double materiality assessment where financial and impact materiality is combined has been a great support for us in the quest of identifying key risks and opportunities that drive long-term value creation. When CFO and CSO teams align around these material topics and metrics, we make better decisions and drive stronger performance.”
CEMEX chief financial officer Maher Al-Haffar echoed the sentiment: “Other chief financial officers and chief executive officers that I talk to believe that sustainability is something that we cannot ignore. Sustainability is incredibly important because it contributes to the profitability of the business. As a CFO, I’m trying to get my hands around how to provide data for investors so that they can quantify it and model it.”
The post 97% of Executives Believe Sustainability Reporting Will be a Business Advantage, Says Workiva appeared first on The Fintech Times.
February 14, 2025 at 11:37AM
https://ift.tt/8BwPgdl
The Fintech Times