A recent survey by Workiva reveals that 97% of executives believe sustainability reporting will offer a business advantage within the next two years. This finding highlights the growing importance of sustainability practices for long-term business success.
The 2025 Executive Benchmark Survey, which surveyed 1,600 global leaders, also indicated that 96% of investors agree that sustainability reporting strengthens financial performance.
While policy uncertainty remains a concern, executives are moving forward with their climate disclosures. A remarkable 85% of them plan to continue with climate reporting, irrespective of political shifts. Moreover, over 10,000 companies have set science-based decarbonization targets or committed to doing so, underscoring a clear trend toward accountability and sustainability.
Workiva CEO Julie Iskow emphasizes that assured financial and sustainability reporting is not just a compliance exercise but a strategic approach that mitigates risk, boosts performance, and boosts investor confidence, reflecting a broader understanding of sustainability as a key driver of growth and competitiveness.
Investor Confidence in Sustainability Reporting
For investors, transparency in sustainability practices is crucial. According to the survey, 92% of investors prioritize data accuracy to evaluate organizations effectively. In fact, 93% of institutional investors are more likely to invest in companies that integrate both financial and non-financial reporting, demonstrating the link between sustainability and financial success.
Nearly 25% of executives don’t trust their financial data, highlighting the need for integrated data and reporting systems. Baker Hughes CSO Allyson Anderson Book emphasizes that sustainable operations increase efficiencies, impacting the bottom line, and a direct cause-and-effect relationship.
The business case for integrated sustainability reporting has never been stronger. Companies that can demonstrate clear and transparent sustainability metrics are more likely to gain investor trust and secure capital. This trend aligns with the growing belief that sustainability isn’t just about managing risk but also about creating long-term value.
Riding the Regulatory Wave
One significant factor driving the push for this is the evolving regulatory landscape. In Europe, many companies view regulatory changes as opportunities to enhance their sustainability reporting practices. The Corporate Sustainability Reporting Directive (CSRD) is a prime example, requiring companies to report on both their environmental and social impacts.
Finnish IT service provider Tietoevry’s chief sustainability officer, Ida Bohman Steenberg, believes the CSRD is a “game changer” for sustainability reporting. The directive requires a “double materiality assessment” that combines financial and impact materiality, allowing companies to identify key risks and opportunities.
This shift in reporting is also creating stronger collaboration between CFOs and CSOs, leading to more informed decision-making and better performance outcomes. As Steenberg explains, when these teams align around material sustainability topics, businesses are able to drive long-term value.
Sustainability Reporting as a Business Imperative
Sustainability is now a core business strategy, with CEOs and CFOs recognizing its interconnectedness with profitability. Maher Al-Haffar, CFO of CEMEX, emphasizes the importance of sustainability for long-term business success, stating that it contributes significantly to the business’s profitability.
The shift toward it reflects the understanding that companies must align their business practices with global sustainability goals to remain competitive. As more companies integrate sustainability into their core business strategies, the focus on accurate, transparent, and reliable sustainability reporting will continue to grow.
The Future of Sustainability Reporting
Looking ahead to 2025 and beyond, sustainability reporting will become a critical part of business strategy. With increasing investor demand for transparent data and growing regulatory requirements, companies that adopt integrated reporting practices will be better positioned to succeed.
As businesses continue to navigate the evolving landscape of climate disclosures and sustainability regulations, the ability to provide clear, accurate, and comprehensive sustainability reports will become a key differentiator in the marketplace.
Sustainability reporting not only reduces risks but also opens growth opportunities, making it a competitive advantage that drives long-term success for businesses.
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