Investor concerns rise: 94% wary of unsupported sustainability claims

Posted on November 25, 2023 by Editor

Perhaps unsurprisingly considering stories surrounding greenwashing, a recent survey by PwC reveals rising investor apprehension around corporate sustainability reporting. A shocking 94% of respondents expressed concerns about unsupported claims, up from 87% in the previous survey, highlighting the growing challenge of greenwashing.

While 70% of respondents believe ESG should be integrated into corporate strategy and 75% deem managing sustainability risks crucial in decision-making, these figures have dipped slightly from the 2021 survey.

However, with sustainability disclosure mandates arriving as early next year in some parts of the world, the future looks brighter for investor confidence, with 57% stating adherence to regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) would meet their information needs.

But what are these needs? According to the survey, investors seek detailed sustainability information, with 76% emphasising the importance of reporting the cost of meeting commitments and 74% wanting a roadmap. Additionally, 75% express interest in detailed reporting on the impact of companies on the environment and society.

The surge in concerns highlights the need for clear, trustworthy information. Global moves towards implementing sustainability disclosures through regulation such as the CSRD are a solution – which will be more effective if those disclosures and digital and standardised. Standardised formats facilitate understanding, reduce the risk of greenwashing, and contribute to a transparent landscape, fostering trust and informed decision-making.

Read more here.

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