Most Companies Plan to Voluntarily Disclose Climate Rules Data

Almost nine in ten companies say they’ll disclose extensive carbon-footprint data even beyond what many are required to produce, according to a new study by global consulting firm Workiva.

In the US, 86% of respondents in the survey released Tuesday said they plan to voluntarily comply with all or part with Europe’s Corporate Sustainability Reporting Directive even though they don’t have to.

European Union requirements ask companies that have subsidiaries in the bloc to discuss their impact on the communities where they operate plus other details on fair labor practices. Those reporting requirements could start as soon as 2026.

The US Securities and Exchange Commission also plans to require companies to disclose their climate impact, but its significantly watered down rules for reporting on greenhouse gas emissions have been put on hold amid litigation.

Voluntarily compliance with rules—especially disclosures—isn’t normal, Andie Wood, vice president for regulatory strategy for Workiva said. Massive investor demand and competition among peer businesses are driving companies to offer the information, she said.

“There are certainly a number of companies, whilst they’re not necessarily shouting as loudly, they’re still looking to provide good data in some context or another,” Wood said. “If they are going to disclose something, it’s important that it is robust and comparable.”

The survey polled environmental, social and governance practitioners across 2,204 companies worldwide with at least 250 employees and $250 million or more in recurring annual revenue. About 660 were US-based.

The survey also showed companies have faith in the accuracy of the data they’re supplying voluntarily but are less sure about their ability to properly report information required under EU government regulations. Nearly all practitioners indicated full confidence in their own data while 83% said collecting accurate data to meet EU requirements will be a challenge to their organization.

That, Wood said, indicates how difficult it is to collect, distill and report the data as required. There’s a lot of pressure to disclose the right information in the right ways, Wood said.

“It tells us that they’re confident in what they’re putting out, but they know that there’s more that could be done and that it could be done more efficiently,” she said.