BARC highlights the top ESG challenges, recommendations, and their outlook for organizations around the globe
Environmental, social, and governance (ESG) factors are increasingly important for improving sustainability, achieving compliance, demonstrating substantive value, and maintaining a positive image to customers, employees, and business partners. However, ESG reporting can be a disruptive, data-intensive process. According to BARC, the two biggest challenges organizations face are a lack of resources and too many different data sources.1
Many organizations face the challenge of collecting ESG data when forming a dedicated team for the task, often discovering they lack the required integration and analytics capabilities and internal expertise. This disruption presents an opportunity for organizations to reassess and redesign their entire process based on the latest guidance. The office of finance is the natural choice for driving ESG efforts, and finance leaders need to act as a valuable partner.
Organizations that embed ESG reporting into their overall business strategy – led by the office of finance – will be in a stronger position to reap the benefits, identify risks, and outperform their competition.
1BARC, The state of ESG and sustainability reporting, 2024
“There is significant potential for improvement in ESG reporting: Enhancing data collection, KPI aggregation and measuring financial impact can drive better compliance and value creation.”
– BARC, The state of ESG and sustainability reporting, 2024
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