ESG, ETHICS AND DATA
R&C: What challenges do organisations face in the context of environmental, social and governance (ESG) and sustainability?
Weghmann: Increasingly, organisations are required to publicly disclose progress toward their sustainability goals. Simultaneously, corporate disclosures are becoming more technical, complex, resource intensive and at times appear confusing. According to our Global Integrity Report 2024, 37 percent of respondents cite keeping up with and complying with new and changing environmental, social and governance (ESG) regulations in various jurisdictions as one of the greatest challenges in their organisation. Yet regardless of the risks or regulatory change they may be facing, whether cyber, ESG or artificial intelligence (AI), leaders often choose a bolt-on approach. Amid regulatory pressure, leaders struggle to take the time and consider the broader implications for business opportunities, governance structures or risk management, to mention a few. Leaders should embed sustainability into their business strategy, making it a driver of long-term value creation rather than simply an add-on. This requires a shift from a defensive, compliance-oriented mindset to a proactive, opportunity-driven approach that aligns ESG reporting with overall corporate goals.
Oct-Dec 2024 Issue
Ernst & Young LLP