In a 2023 Global ESG Practitioner Survey, commissioned by Ames-based Workiva Inc., 71% of environmental, social and governance practitioners surveyed said three or more internal teams contribute to ESG reporting within their organizations.

Additionally, 74% said their companies have appointed at least one employee to oversee ESG reporting and initiatives, up 6% over the previous year, and the same percentage expect their organizations will be required to comply with two or more global regulations.

ESG reporting is the disclosure of environmental, social and corporate governance data. The purpose is to highlight a company’s ESG activities while improving investor transparency and encouraging other organizations to do the same.

In collaboration with Workiva, Ascend2 conducted the global, online survey of ESG practitioners in July 2023. Ascend2 polled 926 professionals from teams typically involved in ESG reporting, including executive leadership, finance and accounting, ESG operations, internal audit and risk management, and legal.

Respondents spanned nine major global markets, including the U.S., Canada, the U.K., Germany, France, the Netherlands, Australia, Japan and Singapore. All respondents came from companies with at least $250 million in annual recurring revenue, and 45% came from companies with $1 billion or more.

“It’s no secret ESG is receiving heightened attention in boardrooms or that increasingly complex frameworks, standards and regulations are presenting new challenges in ESG reporting,” Alex Edmans, a professor of finance at London Business School who helped develop the survey, said in a prepared release. “What struck me from the survey results is the dichotomy between practitioners of all levels agreeing they find value in ESG reporting, while managers in the trenches are saying their companies are not applying the same diligence to ESG reporting as they do to financial reporting.”

The survey uncovered a disparity in perceptions across seniority levels. While 62% of C-level executives strongly agreed that their companies apply the same level of diligence to ESG reporting as they do to financial reporting, only 32% of managers and senior managers shared the same belief. And while 87% of executives said their organizations have appointed someone to an ESG-specific role, 68% of managers said the same.

Despite the disconnect, 90% of survey respondents said that in the next two years, having a strong ESG reporting program will give their organizations a competitive advantage. Additionally, respondents from organizations that have been reporting on ESG for five years or longer were more likely to say ESG has generated cost savings and improved brand awareness and/or reputation for their companies, compared with those that have been reporting on ESG issues for two years or less.

A full report of the survey’s findings can be found here.