ESG Reporting Can Be A Strategic Business Advantage (Study) – CleanTechnica

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A new study from Cambridge University’s Centre for Sustainable Development and DNV, an independent expert in assurance and risk management, has yielded some relevant and interesting insights into Environmental, Social, and Governance (ESG) reporting. 

While some organizations don’t like ESG reporting because they consider it to be extra documentation and therefore a burden, there can be numerous benefits.

Laure Davis, Senior Consultant – Sustainability & ESG services – Supply Chain & Product Assurance at DNV, answered some questions about the ESG study.

72% of businesses globally believe sustainability (ESG) reporting offers them a strategic advantage. How did you arrive at the 72% figure and what advantage does it offer them? 

The study found that 72% of respondents reported that ESG regulatory compliance made their organization more valuable to investors or stakeholders.  

In 2025, 71% voluntarily report on sustainability efforts despite not being required to, ahead of the EU directive, as it gives them ‘enhanced benefits’. These companies choose to report, so what benefits does it give them to do that? 

 Some of the benefits include: 

• Improved operational efficiency 
• Mitigation of future risks 
• New innovations in sustainable products or services 

Here’s a graph from the report to demonstrate this:  

 

When they report, are their reports accurate and trustworthy? 

We did not collect this information as part of the study.

Who do they report to, and do they publish their reports? 

We didn’t collect this information for the study, though ESG reporting is understood to mean annual sustainability or ESG reports in the public domain. These are not the only reports of this kind though, as companies publish multiple other ESG reports that are specific to reporting frameworks and standards.  

63% of respondents experienced improved brand perception because of ESG compliance. Is that because their customers respect sustainability? 

Although we did not collect this information as part of the study, this is understood to be because complying with regulations shows you operate ethically, increasing trust in the brand. We know, for example, that Gen Z and Millennials are seeking out and even willing to pay more for sustainable products and services. 

What is ESG culture and why does it matter? 

Where ESG culture relates to reporting, it means gathering more data to get better visibility over your impact on people and the environment as well as understanding where sustainability issues may impact the financial success of your business. In this way, ESG reporting helps to increase transparency across the value chain.

Are there companies that are behind with ESG reporting, and if so, what can they do to get in compliance? 

It’s less that companies are behind with their ESG reporting, but more that they are struggling with the volume of data collection required to comply with different regulations. 

In a bid to collect all this data and comply, organisations can lose sight of what’s strategically important to the business. DNV helps guide organisations to understand their strategic impacts, risks and opportunities and along the way ensure that this process meets compliance with regulations, as opposed to compliance being the only goal.