According to the 2022 KPMG Survey of Sustainability Reporting, large public companies are still far ahead of smaller public and private companies in producing sustainability reports. The survey found that 96% of the 250 largest global companies by revenue produced a sustainability report in 2021, compared to only 47% of the next 4,500 largest companies and 18% of small and medium-sized enterprises.
The survey also found that the main reasons smaller companies struggle to produce comprehensive sustainability reports are a lack of resources and competing priorities. For example, smaller companies may prioritize short-term financial goals over long-term sustainability objectives, or they may not have dedicated staff or budgets for sustainability reporting.
In contrast, large companies are dedicating more resources to sustainability reporting and ESG programs. Many companies are investing millions of dollars in sustainability initiatives and employing hundreds or even thousands of staff to manage them. For example, Microsoft recently appointed a Vice President of Sustainability to accelerate progress towards its sustainability commitments and goals.
As ESG considerations become more important to investors and stakeholders, companies that fail to report on their sustainability practices risk losing market share and damaging their reputation. Therefore, smaller companies may need to prioritize sustainability reporting and ESG practices to remain competitive in the long run.
Over 90 public companies and 70 non-profit organizations use Socialsuite for tracking and reporting on their impact. With the help of our ESG software and expert team, businesses can easily get started on impact reporting, disclose faster, and save money compared to traditional methods. Whether you're new to impact reporting or looking to enhance your current practices, Socialsuite offers the tools and expertise needed to achieve your sustainability goals. Contact us to learn more about our solutions.