More than half of corporate sustainability teams express concerns over their lack of resources to meet the rising demands of reporting frameworks and disclosure requirements, according to the latest Sustainable Business Tracker Report by edie. The report, which draws insights from nearly 180 business and sustainability leaders across various sectors, highlights a pressing challenge for companies striving to enhance their sustainability practices amid escalating regulatory pressures.
Over the past decade, environmental, social, and governance (ESG) regulations have surged by 155%, with more than 1,255 new regulations introduced globally since 2011. This dramatic rise has placed significant strain on sustainability teams, many of whom feel they are merely meeting compliance requirements rather than driving meaningful progress in sustainability initiatives.
Key findings from the survey reveal that 53% of businesses are currently developing Climate Transition Plans, while just over half are working on the Corporate Sustainability Reporting Directive (CSRD). Additionally, sustainability professionals are grappling with the complexities of various reporting frameworks, including the Task Force on Climate-related Financial Disclosures (TCFD) and the Task Force on Nature-related Financial Disclosures (TNFD). However, the sheer volume of guidance and data required to navigate these frameworks is overwhelming for many teams.
The resource constraints are stark: 49% of respondents indicated their sustainability teams consist of just 1-4 members, while only 9% have the benefit of 10 or more dedicated staff. Alarmingly, 55% of those surveyed do not believe their teams have adequate resources to effectively meet the current reporting demands. Many sustainability professionals report spending 25-50% of their time solely on reporting activities, with a small percentage (6%) dedicating over 75% of their time to compliance.
This situation raises critical concerns about the role of sustainability professionals. With the expectation to act as change agents within their organizations, there is a risk they may instead become bogged down in administrative tasks, potentially stifling innovation and strategic initiatives in sustainability.
The report also includes a special section focusing on the construction sector, highlighting specific net-zero ambitions and sustainability investment priorities. As businesses continue to navigate this challenging landscape, the need for adequate resourcing and strategic focus in sustainability efforts remains paramount.