Reporting Intelligence – March 2025

This month’s reporting intelligence section explores the latest insights filtered from Deloitte, McKinsey, FRC, EY, Workiva, the European Commission, and the World Economic Forum.

The FRC discusses early feedback to the Stewardship Code

The FRC recently hosted a webinar to discuss proposed updates to the UK Stewardship Code, focusing on principles aimed at enhancing its impact. During the session, they highlighted the reasons behind these updates and how they could benefit reporters. The objective is to promote long-term value creation through clear and transparent reporting, ensuring that Stewardship integrates effectively with various investment strategies.

The FRC also emphasised the importance of illustrating how engagement contributes to effective Stewardship. We look forward to seeing the outcomes of the consultation in the near future.

Access the webinar here

85% of companies to stick with climate reporting plans, despite regulatory uncertainty

A recent Workiva survey of over 1,600 executives and 222 investors reveals a strong commitment to sustainability reporting despite regulatory uncertainty. Notably, 85% of executives plan to proceed with greenhouse gas (GHG) disclosure, and 77% maintain a steady approach to sustainability reporting. Impressively, 75% of non-EU executives choose to align with the CSRD, while 81% are ready to partially disclose Scope 1 and 2 emissions with assurance.

Furthermore, 97% believe that integrating sustainability data presents new growth opportunities. Investors prefer companies that combine sustainability and financial information, highlighting a trend towards voluntary disclosure in the corporate world.

Access the survey here

C-Suite evolution: Deloitte shed light on expanding roles and collaboration in a complex landscape

Deloitte recently analysed approximately 46,000 job postings to examine the composition of C-suites in Fortune 500 companies, revealing exciting shifts in executive leadership. The rapid changes driven by technology, data, AI, and regulatory factors are prompting a wider range of roles and responsibilities within C-suites. One key finding is the increasing complexity of executive functions; data management now spans multiple departments rather than being confined to the CIO.

Deloitte advises leaders to embrace these shifts, focusing on collaboration and change management to drive growth and enhance overall organisational success.

Access the findings here

EU Omnibus significantly scales back sustainability reporting requirements, delivering over €6 billion in administrative relief

The European Commission has introduced its “Omnibus” proposal, bringing significant changes to sustainability reporting and due diligence for EU businesses. A notable change is the reduction in the scope of the CSRD, which could potentially exempt around 80% of companies from reporting, focusing primarily on larger firms.

Additionally, some reporting deadlines have been extended to 2028, easing pressure on businesses. Companies will no longer need to report on the sustainability impacts of suppliers unless those suppliers meet specific size criteria. Critics argue that these changes could stall progress on climate action and human rights, sparking diverse opinions on the proposal.

Read more here

McKinsey releases Global Private Markets Report 2025

In 2024, private equity (PE) began to recover from prior challenges, marking a significant shift for the first time since 2015, as distributions to limited partners exceeded the capital invested. This turnaround was fuelled by improved financing conditions, fostering an increase in deal-making, particularly for larger transactions.

Despite a decline in total assets under management, general partners (GPs) are innovating by accessing alternative capital sources and creating new fund structures to enhance liquidity. While some sectors face difficulties, limited partners are increasingly keen to invest in PE, attracted by its strong long-term performance compared to public markets.

Read the article here

FRC issues updated guidance to support going concern reporting

The Financial Reporting Council (FRC) has released updated guidance on the ‘Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks.’ This guidance aims to assist companies in transparently presenting the assessments behind their going concern conclusions, thereby enhancing investor confidence.

It is non-mandatory and consolidates essential requirements from various regulations, making it a valuable resource for report preparation. Designed for companies of all sizes, it promotes high-quality, tailored disclosures. By clarifying these processes, the FRC seeks to foster trust among investors and support the growth of the UK economy.

Download the guidance here

EY publishes CEO Outlook Survey

CEO confidence is crucial for driving long-term transformation and sustainable value, especially considering the anticipated uncertainties in 2025. Leaders with a strategic transformation mindset embrace change as a constant, prioritising growth over quick fixes. EY reports a modest increase in CEO confidence, which fosters cautious optimism for transformation and growth initiatives.

Many assured CEOs are eager to pursue mergers and acquisitions as a catalyst for change. While navigating disruption is vital for sustainable growth, the impact of geopolitical uncertainty cannot be ignored. Nevertheless, with the right mindset, significant opportunities await.

Download the report here

World Economic Forum discusses corporate calm vs economists’ concerns

Many economists express concerns about the economic outlook, whereas business leaders appear more optimistic. This difference arises because economists typically analyse broader, long-term trends, while corporate executives focus on immediate impacts, such as trade wars. Although geopolitics is often perceived as a significant risk, many executives believe it does not substantially affect their businesses.

An ING survey of European decision-makers revealed that nearly half are uncertain about the effects of geopolitics or consider them to have minimal negative or positive impacts. Some even view these geopolitical shifts as potential growth opportunities, offering an encouraging perspective in a complex world.

Read the article here

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If you’d like to discuss this, or any other subject, please get in touch with Richard Costa at richardc@gather.london

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