68% of Large U.S. Companies Now Have Dedicated Sustainability Reporting Budgets: EcoOnline Survey
Over two thirds of large companies in the U.S. have put in place dedicated budgets for sustainability reporting, and nearly all plan to increase spending on sustainability and compliance reporting, and would advance their sustainability efforts even in the absence of climate and sustainability regulations, viewing sustainability as a company value driver, according to a new survey by ESG and EHS solutions provider EcoOnline.
For the study, EcoOnline surveyed 95 C-suite executives, Vice Presidents and Directors at U.S. companies with revenues greater than $500 million annually. The survey had a particular focus on companies’ preparedness for new California laws SB 253 and SB 261, which require large companies doing business in the state to report on Scope 1, 2, and 3 greenhouse gas (GHG) emissions and on climate-related financial risks.
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.
Overall, 42% of respondents reported that their companies are allocating extra budget to meet new sustainability reporting and compliance requirements, 26% said that their boards or C-suite are funding headcount and technology needs, and 25% reported working within their existing budgets.
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, 55% within the next 2 – 3 years, and 14% in 3 or more years. Only 1% reported that they are not increasing spending for sustainability reporting and compliance. Assessing the companies’ plans on technology investments, the survey found that 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.
Notably, all of the survey respondents said that their companies would continue to build their sustainability programs and strategies even without the new 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 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.
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.”
Click here to access the survey.
Source: esgtoday.com
