Global investors grow sceptical of corporate sustainability reporting
Greenwashing concerns may explain the support investors expressed for new disclosure requirements, PwC said.
PwC's 2023 Global Investor Survey, which sought opinions from 345 investors and analysts, found that more than nine in ten investors (94%) believe corporate reporting on sustainability performance contains unsupported claims, an increase from last year.
According to the firm, greenwashing concerns may explain the support investors expressed for new disclosure requirements, such as those from the EU's Corporate Sustainability Reporting Directive and International Sustainability Standards Board.
More than half (57%) of investors said that if companies meet the upcoming regulations and standards, it will meet their information needs for decision-making to a «large» or «very large extent».
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Moreover, the survey highlighted that third-party assurance would increase confidence in sustainability reporting, with 85% of investors noting that reasonable assurances would give them confidence in sustainability reporting to a «moderate», «large», or «very large extent».
Investors still consider sustainability to be a crucial aspect, with 75% indicating that a company's handling of sustainability-related risks and opportunities significantly influences their investment choices. However, this reflects a slight decrease of 4% from last year.
There is also a growing interest in understanding a company's influence on society and the environment. Of those, 75% believe that companies should reveal the monetary value of their impact on the environment or society, marking an increase from 66% in 2022.
«Sustainability is clearly on the minds of investors, and they are pressing to
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