A new study conducted by New Intertek Research reveals the views of UK companies around current energy sustainability reporting standards and mechanisms.
Almost 75% of companies believe there are too many energy sustainability reporting standards in the UK. 85% of these firms are calling for more clarity around the mechanisms.
Key study findings include:
- Sustainability has become the main focus for companies to meet demands from investors, regulators, government, employees and the public. 74% of c-suite level survey participants say customers and stakeholders are demanding firms do more in relation to sustainability.
- 83% say the government and politicians are putting more efforts to improve sustainability performance. 79% say there greater awareness on this issue from employees and 83% from the general public.
- 65% of senior company members find it difficult to understand their supply chain beyond those they have a direct relationship with/ 57% do not know how to assess the relationships within their companies' supply chain.
- 76% say their companies take on risk by not assessing their full supply chain - 90%acknowledged that at least some elements of their company supply chains would receive a poor sustainability report if they were to be fully audited.
André Lacroix, CEO of Intertek, said: "The world is changing at the speed of light in multiple directions, increasing the complexity of companies' operations and in response, stakeholders are seeking genuine reassurance that corporations take an end-to-end sustainability approach across their entire value chain.
"C-suite decision-makers recognise there are greater demands – from all angles – to improve their sustainability performance and disclosures and our research shows that 71% believe there are currently too many reporting standards. This is the paradox facing executives, as they need a way to authenticate the sustainability they are building into the fabric of their businesses.
"With supply chains becoming ever more complex, the importance of managing risk at every level has only grown in importance. In short, companies want a better way to navigate the multitude of reporting standards that exist and evidence their commitment to end-to-end sustainability as a corporation."
The study was conducted online by FTI Consulting from 30 Aug to 3 Sept 2019 with 550 business leaders.