20221110-安永-How_can_corporate_reporting_bridge_the_ESG_trust_gap_24页_2mb

EY Corporate Reporting and ESG Trust Gap Analysis

Key Findings

Investor vs. Company Perspectives

• Conflicting Priorities: 78% of investors believe companies should invest in ESG issues even if it reduces short-term profits, but only 55% of companies agree.
• Trust Concerns: 76% of investors question companies' selectivity in ESG disclosures, raising greenwashing concerns.
• Short-Term Pressures: Investors focus on quarterly earnings (80% citing this as a barrier to long-term investments).

Disconnect Challenges

• Lack of Assurance: Only 54% of companies report being satisfied with ESG disclosure transparency.
• Inconsistent Reporting: Informal evaluation of sustainability disclosures increased from 35% to 40% among investors.
• Climate Scenario Analysis: Only 29% of companies perform forward-looking climate risk analysis.

Actionable Priorities in Sustainability Reporting

1. Focus: Align portfolios with net zero goals and enhance climate risk analysis.
2. Accountability: Strengthen governance and board oversight around ESG strategy.
3. Transparency: Implement emerging global standards and increase third-party assurance.

Future Directions

• Embrace transparent, data-driven sustainability reporting.
• Develop integrated finance-ESG operating models.
• Build data analytics capabilities using AI/ML tools.
• Cultivate innovative organizational cultures supporting sustainable practices.

By addressing these gaps and prioritizing transparency, companies can bridge the trust divide and enhance stakeholder confidence in long-term value creation.