A recent survey by ESG and EHS solutions provider EcoOnline reveals that over two-thirds of large U.S. companies have allocated dedicated budgets for sustainability reporting, with nearly all planning to increase spending on sustainability and compliance reporting.
The survey, which focused on 95 C-suite executives, Vice Presidents, and Directors at companies with annual revenues exceeding $500 million, highlights that most businesses view sustainability as a key value driver and plan to advance these efforts regardless of regulatory requirements.
A large majority of respondents reported anticipated benefits from their sustainability programs, including 74% that expect a positive impact on revenue growth, and 95% expecting a positive impact on brand value from sustainability initiatives, according to the survey.
As climate-related disclosure regulations advance, the survey found that companies are mobilizing to address the new requirements, with 93% of respondents reporting that they have dedicated budgets in place for sustainability reporting and compliance, including 68% with a dedicated budget for sustainability reporting for spend in areas such as hiring staff, investing in technology, and building processes for collecting, reporting and analyzing GHG emissions and other sustainability metrics.
Moreover, nearly all respondents reported plans to increase spending for sustainability and compliance reporting, including 30% who plan to increase spending within the next 12 months, and 55% within the next 2 – 3 years. 76% of respondents reported that they are planning to implement or exploring dedicated software for specific sustainability applications.
The report also examined companies’ approaches to reporting Scope 3, or value chain, GHG emissions, finding that 37% of companies are asking their suppliers to self-report sustainability data, 80% are providing suppliers and partners with templates and requirements for reporting, and 13% are deploying software solutions to allow for better data collection and reporting.
As sustainability programs advance, the survey also found high levels of board and executive involvement and engagement, with 40% of respondents reporting that their board or CEO now had accountability or oversight of sustainability strategies and compliance, and another 55% reporting that accountability has been assigned to a senior executive or VP-level leader within a dedicated sustainability department or Finance.
Key finds
- 74% that expect a positive impact on revenue growth
- 95% expecting a positive impact on brand value from sustainability initiatives
- 37% of companies are asking their suppliers to self-report sustainability data
- 80% are providing suppliers and partners with templates and requirements for reporting,
- 68% of large US companies have dedicated sustainability reporting budgets
- 42% reported that their companies are allocating extra budgets to meet sustainability requirements
- 30% plan to increase spending in the next 12 months
- 55% plan to increase spending in the next 2-3 years
- Only 1% do not plan to increase spending on sustainability needs
Tom Goodmanson, CEO of EcoOnline, said:
Our survey highlights a critical tipping point where U.S. companies are boldly moving beyond reactive compliance and penalty avoidance, embracing sustainability as a powerful engine for growth. While they are committed to these initiatives, the specifics of how they will achieve their goals remain uncertain. This underscores the need for clear strategies and robust technology solutions to navigate the evolving regulatory landscape and drive meaningful impact.
Sustainability isn’t just a trend; it is a fundamental shift in consumer behavior and business practices. Investing in sustainability is an investment in our brand’s long-term viability.
Global sustainability leader respondent
View the Survey: 2024 Sustainability Readiness Report
