Survey: Half of companies are hiring new talent to meet ESG reporting requirements

Hiring new talent is now the most common initiative taken by companies to enhance GHG measurements and meet ESG reporting requirements, according to a Deloitte survey.

In December 2022, just 40% of companies surveyed were hiring new people for this function. Instead, companies were focused on including ESG in disclosure committee reviews and SOX controls (used to ensure the integrity of financial data). 

Now, the 2024 Sustainability Action Report shows that 50% of the hundreds of public and private companies surveyed by Deloitte across consumer products, financial services, life sciences and healthcare, oil and gas, and technology, media, and telecommunications – all with more than US$500 million in revenue – are prioritising talent acquisition to meet new ESG reporting expectations.

In contrast, fewer firms are investing in technology or software tools to streamline disclosures: 74% in 2024, compared to 99% in 2022 – though Deloitte believes this decrease is “likely due to some companies having already made investments over the past few years”.

The responsibility for managing sustainability disclosures tends to fall primarily on the Chief Sustainability Officer at 55% of firms – though it is also spreading to other functions such as the General Counsel and executive leadership team. In addition, boards increasingly holds oversight over the ESG strategy: for 44% of firms, it is the full board that carries that responsibility, while 35% have given this task to a sustainability committee. 

ESG reporting preparedness accelerates

With the EU’s Corporate Sustainability Reporting Directive (CSRD) passed and implemented, fewer companies than in 2022 are preparing for future regulatory changes: 38% in 2024, compared to 58% in the last survey, say they are “preparing extensively” for potential increased disclosure requirements. 

Additionally, 17% of private companies and 8% of public companies have now adopted a ‘wait and see’ approach – which Deloitte believes could reflect the state of climate disclosure rules implementation in the US (the SEC’s rule is currently stayed due to legal challenges and California is seeking to delay its own climate reporting laws by two years).

The benefits of ESG reporting are also increasingly recognised by large corporations, which cite brand reputation (20%) as the top positive business outcome from this exercise, followed by talent attraction (15%) and price premiums for their products (14%).

Moreover, half (51%) of respondents expect sustainability disclosures to bring internal benefits, such as improved operational efficiencies, reduced risk, or strengthened trust with stakeholders.