A recent study by Workiva Inc. shows that 85% of companies remain committed to climate disclosures despite political uncertainties, reinforcing the increasing role of ESG and carbon neutral strategies in corporate decision-making. The findings highlight that businesses view sustainability reporting not just as a compliance requirement but as a strategic tool for risk mitigation, financial performance, and investor confidence. 

The study surveyed executives and institutional investors, revealing that 97% of business leaders believe sustainability reporting will offer a competitive advantage within the next two years. Furthermore, 93% of investors are more likely to invest in companies with integrated financial and ESG disclosures, emphasizing the growing demand for transparency. Despite regulatory shifts, companies are pushing forward with science-based decarbonization targets, with over 10,000 firms committing to emissions reductions-a 29% increase from the previous year. 

Julie Iskow, CEO of Workiva, stated that businesses are proactively integrating sustainability into their operations, recognizing that assured financial and non-financial reporting strengthens investor trust and overall performance. However, while 92% of investors prioritize data accuracy in ESG assessments, nearly a quarter of executives admit they lack full confidence in their financial data, highlighting a critical gap in reporting reliability. 

European regulations, particularly the Corporate Sustainability Reporting Directive (CSRD), are accelerating ESG adoption. Industry leaders see this directive as a transformative force, aligning sustainability ambitions with financial decision-making. Ida Bohman Steenberg, Chief Sustainability Officer of Tietoevry, noted that the CSRD fosters collaboration between CFOs and CSOs, enabling stronger governance and long-term value creation. 

Executives emphasize that sustainability is essential for profitability, with companies increasingly integrating ESG principles to drive growth. As businesses continue to prioritize climate transparency, ESG-driven strategies are expected to shape the corporate landscape, reinforcing long-term resilience in a rapidly evolving global economy. 

Sources: 

https://esgnews.com/85-of-companies-to-continue-climate-disclosures-despite-political-shifts-workiva-study-finds/ 

https://investor.workiva.com/news-releases/news-release-details/executives-remain-committed-integrating-financial-and 

https://www.corporatecomplianceinsights.com/news-roundup-february-17-2025/