Why meeting ESG regulations remains the biggest challenge in any risk management function

The EY Global Integrity Report 2024 highlights that ESG-related regulatory reporting and data integrity have emerged as significant risks for organisations. As climate-related goals transition from voluntary commitments to mandatory obligations, the conversation around net-zero emission targets and broader ESG issues has shifted notably over the past two years.

This shift has been from ambitious aspirations to a focus on regulatory compliance, as detailed by EY global ESG leader Katharina Weghmann (pictured above).

Traditionally, many organisations established lofty goals, issued audited Global Reporting Initiative (GRI) reports, and disclosed their climate impacts in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

However, in recent times, the discussion has pivoted to the significant challenges and risks associated with ESG, particularly those emerging from evolving regulations, a lack of harmonisation across sustainability reporting standards, and concerns around data integrity.

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