Energy Efficiency, GHG Emissions, Industrial  -  July 19, 2024

Deloitte Survey: Majority of US Companies Report Progress on Sustainability

Over three-quarters of executives announced significant or moderate progress toward their sustainability goals in the past year, according to Deloitte's 2024 "Sustainability Action Report." 

The survey of 300 senior business leaders across industries details their approach to and integration of environmental, social and governance (ESG) measures. 

The results of the survey demonstrate that mandatory reporting requirements are prompting many companies to strengthen their focus on integrating sustainability into strategic planning, risk management and data governance.

The 2024 report explores companies' current ESG mindset and the benefits that can be realized from acting now to strengthen trust with stakeholders and prepare for regulation.

"Sustainability reporting and transparency can drive trust with stakeholders and is now subject to assurance and regulatory scrutiny in many jurisdictions," said Kristen Sullivan, Audit & Assurance partner, and US Sustainability and ESG marketplace leader, Deloitte & Touche LLP, in a statement. "By strengthening sustainability governance and capabilities, organizations can prioritize performance on material sustainability impacts, risks and opportunities, and unlock strategic insights to help capture market value and stakeholder trust."

As detailed in the report, the sustainability landscape experienced significant shifts during the last year, with the US Securities and Exchange Commission (SEC) adopting final rules on climate-related disclosures and more extensive requirements mandated by the European Union. Despite legal challenges with the SEC climate rule, many organizations are investing in sustainability reporting as they aim to recognize tangible business benefits both internally and externally.

Over half (51%) of respondents cited greater efficiencies, lowered risk and enhanced trust with stakeholders as the top three internal business benefits influenced by investing in sustainability reporting. Brand reputation and enhancement (20%) is the top business outcome respondents expect to see from enhanced ESG reporting. 

Another 15% expect enhanced talent attraction and retention, and 14% seek to realize pricing premiums for their products, highlighting how ESG reporting can influence external perceptions of the company. These findings demonstrate the multidimensional value that can be derived from high-quality sustainability reporting, from driving operational efficiencies to performance enhancement and stakeholder trust.

Companies are continuing to integrate ESG into their workflows and shore up talent with relevant skillsets to meet demands for more rigorous disclosure. Virtually all (99%) of respondents reported they are preparing for potential increases in sustainability requirements, and 77% are creating new roles and responsibilities as a result.

Over half (52%) report having created a cross-functional ESG council or working group, down from 57% in December 2022.

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