The latest edie Sustainable Business Tracker Report has found that more than half of sustainability teams lack the resources to respond to rising reporting requirements. This in-depth survey interviewed almost 180 business and sustainability leaders across all major sectors in the UK.Â
The report was created with the realisation that businesses of all sizes and sectors are under a lot of pressure to accelerate progress on net zero and sustainability strategies. In addition, the need to know what other organisations are doing across these areas is greater than ever before. This edition of the quarterly Sustainable Business Tracker focuses on the rise of corporate disclosure requests and upcoming reporting frameworks.Â
The report findings
The report found that there are several big-ticket regulatory pieces that businesses are juggling at the moment. Over half (53 percent) of businesses claimed they are actively working on developing their Climate Transition Plans. Moreover, the Corporate Sustainability Reporting Directive (CSRD) is currently being actively worked on by just over half of sustainability teams.Â
The Business Tracker also examined how many businesses are working on reporting in alignment with other frameworks like the Task Force on Nature-related Financial Disclosures (TNFD), the Task Force on Climate-related Financial Disclosures (TCFD), and the Corporate Sustainability Due Diligence Directive (CSDDD).Â
The survey found that 49 percent of respondents have a sustainability team of 1 to 4 people and just 9 percent are lucky enough to have more than 10 individuals dedicated to working in their sustainability functions. Over half of the respondents (55 percent) said that they do not believe their sustainability team is ‘adequately resourced’ to deliver disclosure and reporting requirements.
It also shared that approximately 40 percent of sustainability professionals allocate between 20 and 50 percent of their time annually solely on disclosure and reporting. In addition, there is a selection of businesses (6 percent) that dedicate over 75 percent of their time to do this activity year-round.Â
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Supporting sustainability teams
Businesses can better support their sustainability teams by providing the necessary resources, tools, and systems to manage the increasing demands of sustainability reporting. One key area of support is offering a dedicated budget for sustainability initiatives. This ensures that teams have the financial resources to invest in advanced reporting tools, hire external consultants, and implement sustainability programmes that enhance their reporting capabilities and overall sustainability efforts.
However, training and professional development are also critical to keeping sustainability teams up to date with the latest reporting standards, regulations, and industry trends. Businesses can support their teams by offering ongoing training and certifications in sustainability reporting frameworks like the CSRD or the Global Reporting Initiative. This ensures that team members remain equipped with the knowledge to meet rising reporting requirements.Â
At the Institute of Sustainability Studies, we offer an online, self-paced Certificate in CSRD course. This short course allows participants to gain foundational insights into the CSRD and transform their approach to sustainability reporting. The CPD-certified course helps them understand essential compliance strategies and includes lessons on the CSDDD and the European Sustainability Reporting Standards (ESRS).Â
Conclusion
The rising demands of sustainability reporting are putting significant pressure on businesses and their sustainability teams. The findings from the edie Sustainable Business Tracker Report reveal a clear need for more resources, training, and support to meet evolving corporate disclosure requests and regulatory requirements.Â
Investing in dedicated budgets, advanced reporting tools, and professional development is crucial to ensuring sustainability teams can effectively manage these challenges. Without taking these measures, businesses risk falling behind on regulatory compliance, damaging their reputation, and missing opportunities to lead in sustainability.Â
