This week’s reading time: 8 minutes

Welcome to another edition of The Green Executive Briefing. In under 10 minutes, you’ll be fully updated on the latest happenings in Sustainability and ESG every Tuesday at 8am EST. 🌎

We sift through a vast array of articles and data from trusted sources, distill the information, and present it to you in simple, bite-sized pieces every week. 🌍

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In this edition, we'll cover:

• Unwavering Corporate Commitment: Explore why 85% of companies plan to maintain sustainability reporting regardless of regulatory changes, and how executives are recognizing strategic value beyond compliance. 📊

• Investor Confidence Trends: Mark the significant increase in investor preference for integrated reporting, with 97% more likely to invest in companies providing assured sustainability data, up from 88% last year. 📈

• Navigating Cross-Regional Requirements: Strategies for companies operating globally to address varying standards, with 75% of non-CSRD companies planning partial alignment and 81% preparing for Scope 1 and 2 emissions disclosure. 🌐

• Data Quality Challenges: Understand the confidence gap, with 29% of executives uncertain about their sustainability data accuracy and 35% lacking confidence in internal controls. ⚠️

• Technology Readiness Assessment: List essential technology improvements needed, as 73% of executives report insufficient reporting capabilities for meeting new climate regulations. 🖥️

🌟 Spotlight: Dylan Brown

Dylan Brown is an expert in GHG Accounting, Sustainability Strategy, and Environmental Permitting. The coolest thing about him? He’s a big Philadelphia Eagles fan.

“I’m an Environmental, Health & Safety (EHS) professional with a strong focus on ESG and sustainability. I ensure risk mitigation strategies align with operational safety and regulatory compliance.”

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Intro

Companies are standing firm on their sustainability reporting commitments, with plans to maintain climate disclosure practices regardless of changing regulations, according to new research from Workiva.

The study reveals executives increasingly recognize the strategic value of sustainability data, while investors demonstrate growing preference for companies that integrate sustainability and financial information.

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Workiva's "Executive Benchmark on Integrated Reporting 2025" surveyed over 1,600 C-suite executives and VPs from companies with revenues exceeding $250 million across four continents, alongside 222 institutional investors managing more than $250 million in assets.

The findings emerge amid significant regulatory uncertainty in sustainability reporting. In the U.S., the SEC is reevaluating its climate disclosure requirements following Donald Trump's election, though California continues to advance legislation mandating greenhouse gas emissions and climate risk reporting for large companies despite legal opposition. Similarly, Europe may adjust the scope and timing of sustainability regulations like CSRD and CSDDD as part of broader efforts to reduce corporate reporting burdens.

Despite these shifting landscapes, 85% of surveyed executives plan to proceed with their existing greenhouse gas emissions disclosure strategies, regardless of political developments in their countries. Additionally, 77% report maintaining their current sustainability reporting approach without changes.

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Even companies not subject to specific regulations are embracing voluntary alignment. Among businesses exempt from the EU's CSRD, 75% of executives intend to partially align their reporting with the directive's standards. Likewise, 81% plan to disclose Scope 1 and 2 emissions with some level of assurance, despite uncertainty surrounding the SEC's climate reporting rule.

This commitment stems from recognized strategic advantages. Nearly all executives (97%) believe integrated sustainability and financial data helps identify performance gaps that enhance growth opportunities. The same percentage agrees that robust sustainability reporting will deliver competitive advantages within the next two years.

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Julie Iskow, Workiva's CEO, emphasizes: "CEOs are making choices today that will shape their business for years to come. Assured financial and sustainability reporting is not simply a compliance play, it's a strategic approach to mitigate risk, fuel performance, and strengthen investor confidence."

Investor interest in sustainability metrics continues to climb, with 96% of institutional investors agreeing that integrated reporting enables better decision-making for improved financial performance, up from 91% last year. Moreover, 97% of investors report being more likely to invest in companies with assured integrated reporting, compared to 88% in the previous survey.

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Despite recognizing the value of sustainability reporting, many companies acknowledge data quality challenges. Twenty-nine percent of executives lack full confidence in their sustainability reporting accuracy, while 35% question their internal controls over sustainability data. Almost three-quarters (73%) believe their current reporting technology is insufficient for complying with new climate regulations.

Tensie Whelan, Distinguished Professor at NYU Stern Center for Sustainable Business and Workiva Advisory Council member, notes: "Nearly a decade of my work with corporate leaders and investors shows that establishing a focus on material sustainability issues, with both an opportunity and a risk lens, meaningfully drives enterprise value. And good data is essential to making well-informed decisions about where and how to invest effectively. Investors, customers, and other stakeholders continue to demand increased transparency and accountability.

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Our Take: As a corporate sustainability professional, I find these results particularly insightful but not surprising. The 85% commitment rate despite regulatory uncertainty reflects a fundamental shift in how businesses view sustainability reporting - it's transitioning from a compliance exercise to a strategic business imperative.

Several aspects of this research stand out to me:

First, the investment community is clearly driving this momentum. When 97% of investors say they're more likely to invest in companies with assured integrated reporting (up from 88%), that's a market signal impossible to ignore. Capital markets are effectively rewarding transparency and penalizing opacity.

The voluntary adoption by companies not subject to regulations (75% aligning with CSRD despite no requirement) demonstrates that standardization is happening organically through market forces. Companies recognize that using globally accepted frameworks makes their data more comparable and credible.

WRAPPING UP

Our Take: However, the confidence gap is concerning. With 29% of executives uncertain about their data accuracy and 35% lacking confidence in controls, we're facing a significant risk of greenwashing accusations or restatements. The 73% reporting insufficient technology is a critical vulnerability that needs addressing.

What's not explicitly stated but implied is the competitive intelligence angle. Companies aren't just reporting for investors - they're benchmarking against competitors and using sustainability metrics to identify operational efficiencies and innovation opportunities.

The strategic nature of this data is the real story here. As sustainability professionals have long argued, when properly integrated with financial information, ESG data provides critical insights into organizational resilience, efficiency, and future value creation potential.

P.S. When you’re ready, here’s how I can help you:

1. Download our Dashboard GHG Accounting Scope 1, 2 & 3. Customize it with your organization's numbers to build a compelling business case.

2. Refer 2 other sustainability leader (see “Click to Share” button below)

3. Book a Consultation: Click HERE

   1. GHG Accounting Strategies (Scope 1, 2 & 3) 

   2. ISO 14001 Compliance (Environmental Management)