Reporting Intelligence – November 2024
Our Reporting Intelligence pages are a treasure trove of insightful reads, we’ve done the hard work, so you can stay informed without the hassle.
Explore the latest reporting updates including a survey from KPMG on the latest CEO climate strategies, greenwashing insights from RepRisk and EY as well as a new public sector climate reporting standard released by the IPSASB.
1. KPMG survey finds that 69% of CEOs have retained the same climate-related strategies but have adapted the climate-related language
KPMG’s 2024 CEO Outlook survey of 1,325 large company CEOs reveals that 69% of CEOs remain committed to their climate strategies but are adapting the language and terminology they use to communicate it. The survey also found that while many are not confident that their companies will achieve their near-term climate goals (with critical barriers to the achievement of climate ambitions including the complexity of decarbonising supply chains, and a lack of skills and expertise to implement solutions successfully, each cited by 24% of CEOs), most anticipate significant returns from their sustainability efforts over the next five years. Despite this, the research found that ESG remains high on the CEO agenda, with ‘execution of ESG initiatives’ remaining in the top three operational priorities for the next three years, tied with ‘understanding and implementing generative AI across the business and upskilling their workforce,’ and behind only ‘advancing digitisation and connectivity’ across the business.
Read more here
2. Mixed signals: UK greenwashing cases drop 4% while severe incidents soar by 30% RepRisk find
A new report from RepRisk reveals a complex picture of corporate greenwashing in 2024. While greenwashing incidents have decreased for the first time in six years, high-risk cases have surged by 30% globally, indicating more sophisticated and serious breaches. Greenwashing incidents in the UK have dropped by 4% this year. Despite the decline this still marks a 179% rise from 2018 levels, making the UK a significant hotspot for greenwashing. The number of greenwashing cases in the UK remains higher than in countries such as Australia, Brazil and China, with only the US, the EU, and Germany surpassing the UK.
More concerning is the shifting nature of these incidents: while minor breaches fell by 30%, serious violations rose by 21%. These serious violations often involve deliberate, systematic efforts to conceal significant environmental, social, and governance (ESG) violations that have substantial consequences for the environment, such as extensive pollution. The report also highlights that 21% of UK companies involved in greenwashing are repeat offenders. Meanwhile greenwashing cases in the EU, with stricter regulations, have fallen by 20%, suggesting that enhanced regulatory scrutiny may influence. The findings emphasise the growing importance of authentic environmental reporting and compliance in the UK market.
Read more here
3. Over half of CFOs fear greenwashing in sustainability reporting, EY survey finds
A new EY survey of 2,000 global finance leaders reveals that 55% fear their industry’s sustainability reporting risks being perceived as greenwashing. The study highlights a significant gap between reporting requirements and capabilities, with 96% of finance leaders reporting problems with non-financial data, including issues with varying formats (39%), inconsistencies (35%), and incomplete data (34%). Less than half believe their organisations will achieve core sustainability targets like net zero.
While investors are increasingly focused on sustainability, with 43% employing full-time sustainability analysts, companies struggle with data integrity. Most finance leaders lack high-grade technology for data management, with only 32% having such systems in place. In response, companies are creating ‘ESG controller’ positions, with 36% already having this role and 58% planning to establish it. Investors remain optimistic, with 78% believing new reporting regulations and standards will improve disclosure accuracy.
Find the survey here
4. IPSASB unveils first-ever public sector climate reporting standard, open for comment until 2025
The International Public Sector Accounting Standards Board (IPSASB) have released SRS ED 1, a groundbreaking draft standard for climate-related disclosures designed for governments and public sector entities. This initiative, supported by The World Bank, marks the first sustainability reporting standard tailored for the public sector.
The standard builds upon the IFRS Foundation’s existing frameworks and responds to urgent demand identified through previous consultations. It focuses on entities responsible for climate-related public policy programmes, recognising governments’ unique position to drive economy-wide climate action through policy tools like taxation and regulation.
The draft is open for public comment until 28 February, 2025, seeking input from various stakeholders including preparers of public sector reports, standard setters, and sustainability assurance providers. The ISSB Vice-Chair emphasises that alignment with global baseline standards will enhance cross-sector comparability and reduce reporting fragmentation.
Read more here
Receive monthly up to date reporting insights, directly to your inbox
Subscribe to our newsletter
Get in touch:
If you’d like to discuss this, or any other subject, please get in touch with Richard Costa at richardc@gather.london
We’d love to hear from you.