How can better sustainability reporting mobilize companies and capital?

Trust in sustainability information is arguably declining rather than improving, making an active role for companies and financial markets more important than ever. The EY Global Institutional Investor Survey research – which focuses on the views of 320 senior investors at major buy-side institutions worldwide, draws on the contrasting views of both companies and investors.

The results highlight three priorities for companies:
1. A multi-stakeholder model could help companies to unlock action and value by focusing on what really matters, especially on net zero goals. 99% of investors have either already aligned their portfolio to net-zero or plan to do so over the next two years, while only 35% of companies have committed to cut emissions on or before 2030. 
2. Investors recognize that robust corporate governance is critical if companies to truly embed sustainability into their strategies and decision-making, with 94% of investors believe incorporate a chief sustainability officer into the governance framework is a crucial step.
3. Being an early adopter of on emerging standards e.g ISSB can set a precedent. Additionally, 90% of investors recognize the significance of assurance, while 41% of finance leaders think their ESG data would not pass the scrutiny offered by reasonable assurance.
By getting companies and investors on the same sustainability page, there is a better chance of achieving results at the scale and speed that our planet and society require.

For more details on our 2022 EY Global Corporate Reporting and Institutional Investor Survey and EY 2022 Global Climate Risk Barometer, please click here.

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