How ESG and EHS Will Evolve

How ESG and EHS Will Evolve

April 16, 2024
Investor demand for ESG compliance has prompted deeper scrutiny of their ESG and EHS processes,

Researchers of a report from Verdantix and Wolters Kluwer, 5 Ways ESG and EHS Will Evolve Together in 2024, interviewed 150 key decision makers representing 27 countries and 10 industry verticals to see how companies are addressing both EHS and ESG priorities. 

The key findings of the report are as follows:

Further integration of ESG is needed across business operations.The survey revealed that 85% of firms note investor demand for ESG compliance has prompted deeper scrutiny of their ESG and EHS processes, as well as their data and green claims.

Desire for reasonable assurance is increasing but not yet achieved. When asked what level of assurance companies are aiming for 74% said reasonable assurance for some or all metrics. However, the report found that immature data management procedures may not be able to meet these objectives.

Companies understand the need to digitalize and create new roles for ESG reporting. Some companies are establishing the role of an ESG controller, hoping to bridge ESG-related data flows between functions. 

AI-enabled solutions can help link data.  AI can be used to identify trends and patterns in ESG data, helping to improve strategy. However, the survey shows that 75% are yet exploring this capability. 

Here are what respondents mentioned when asked about their largest ESG challenges:

  • Scope 3 emission monitoring-- 17%
  • Granular asset-level carbon emission tracking --16%
  • Ability to develop climate scenario analysis-- 14%
  • Identifying risk and opportunities from the transition to the green economy--  13%
  •  Exposure to support and strengthen climate-related resilience -- 10%
  • Obtaining data for and completing ESG Reporting--9%
  • Assessment and management of ESG-related risks --8%
  • Ability to produce relevant social impact metrics --7%
  • Obtaining data for understanding and reporting nature-related dependencies, risks and opportunities --6%

Sponsored Recommendations

ISO 45001: Occupational Health and Safety Management Systems (OHSMS)

March 28, 2024
ISO 45001 certification – reduce your organizational risk and promote occupational health and safety (OHS) by working with SGS to achieve certification or migrate to the new standard...

Want to Verify your GHG Emissions Inventory?

March 28, 2024
With the increased focus on climate change, measuring your organization’s carbon footprint is an important first action step. Our Green House Gas (GHG) verification services provide...

Download Free ESG White Paper

March 28, 2024
The Rise and Challenges of ESG – Your Journey to Enhanced Sustainability, Brand and Investor Potential

Work Safety Tips: 5 Tactics to Build Employee Engagement for Workplace Safety

March 13, 2024
Employee safety engagement strategies have become increasingly key to fostering a safer workplace environment. But, how exactly do you encourage employee buy-in when it comes ...

Voice your opinion!

To join the conversation, and become an exclusive member of EHS Today, create an account today!