A classic example of “if you can’t beat them, get paid for it.”
Data is one of the biggest challenges for executives in the evolving ESG landscape, according to a March survey from Deloitte. The majority (57%) of finance, accounting, sustainability and legal executives told the firm that data availability and data quality, i.e., accuracy and completeness, are their greatest challenges.
Much of the ESG data that companies do collect is done so on an ad hoc basis without the formal process or controls that are applied to financial information, according to Maura Hodge, KPMG Impact and ESG audit leader.
One solution is independent audits of ESG data, sources said. The AICPA’s study of 1,400 global companies based on the 2020 public reporting cycle showed that the majority (92%) publicly reported at least some ESG information and that, of those companies, 58% obtained some level of assurance, up from 51% in 2019.Three out of four executives told Deloitte that they plan to obtain assurance on ESG disclosures in the next reporting cycle.Agenda – Investors, Regulators Press for Audited ESG Data