CFOs Voice Concerns Over Achieving Net-Zero Targets: EY Survey

A recent EY survey reveals that many finance leaders, including CFOs, doubt their industries’ ability to meet sustainability targets, with only 47% confident their companies will achieve net-zero goals and other environmental objectives on time. Institutional investors are slightly more optimistic, with 53% expecting companies to stay on track.

The study, surveying 2,000 finance executives and 815 institutional investors, underscores growing accountability from customers, regulators, and shareholders regarding corporate environmental impact. Nicolas Lecoq, EY’s global leader in financial accounting advisory services, emphasises that accurate corporate reporting is increasingly crucial to maintaining stakeholder trust.

Finance leaders in the U.S. and Europe navigate evolving regulatory landscapes. Under the European Union’s Corporate Sustainability Reporting Directive, around 50,000 companies will soon need to provide detailed ESG reports. Meanwhile, the U.S. Securities and Exchange Commission has paused a climate risk disclosure rule amid legal challenges, potentially mandating firms to disclose the financial impact of climate change.

Notably, 69% of finance leaders report heightened stakeholder interest in sustainability, yet 96% are concerned about data integrity. Over half fear accusations of “greenwashing” due to unverifiable non-financial disclosures. Additionally, while two-fifths see potential in AI for sustainability reporting, 29% seek to better understand its risks, with investors similarly hopeful about AI’s role in improving data accuracy.