Beyond Compliance: Assured Integrated Reporting is a Business Imperative, No Matter the Administration

Although corporate reporting mandates have taken center stage the past few years, we shouldn't let their debut belie the true driver of integrated reporting: investor-driven market pressure. Despite the market's focus on compliance since the adoption of critical rules-including the EU's Corporate Sustainability Reporting Directive (CSRD), globally spread adoption of ISSB, and California's climate rules-the primary drivers for sustainability reporting remain anchored on value creation, strengthening performance, and business resilience.

While more than 60 upcoming and recent global elections-including the return of a Trump administration in the U.S.-may signal shifts in federal climate policies, the market demands that underpin integrated reporting remain steadfastly driven by investor requirements for decision-useful information that mitigates risk.

In a recent Reuters article, Shiva Rajgopal, a professor at Columbia Business School, sums it up perfectly, "Most ESG problems are business problems. I'm an accounting professor. I can tell you that if you pick any company's 10K and look at the risk factors, they are full of E and S problems."

Assured integrated reporting: A holistic approach to business performance

Sustainability reporting enables companies to see beyond financial performance-it offers a holistic view of value creation and risk management. Integrated reporting that aligns financial data with non-financial metrics enhances stakeholder trust and improves decision-making.

A Gartner study highlights the fact that banks, insurers, credit rating agencies, and fixed-income investors surveyed all focus on ESG and sustainability criteria when making investment decisions. A study we commissioned found that 91% of executives surveyed agree that integrated reporting provides a more complete picture of business performance.

The strategic business case: Access to capital, data control, and risk impact

For corporations, sustainability reporting drives critical business outcomes. Investors demand standardized, decision-useful data to manage risk and allocate capital effectively, and sustainability metrics have become essential to meet this demand. Companies prioritizing sustainability find greater access to capital, increased control over their financial and non-financial data, and measurable improvements to overall performance.

Moreover, with increased public awareness of environmental issues, businesses-especially in sectors like retail, technology, and energy-face rising pressure from consumers who favor companies that demonstrate environmental responsibility. In this evolving economy, the value of sustainability as a competitive lever can't be ignored.

Sustainability's range outside the political sphere

While the return of a Trump administration will likely stagnate federal climate rules, state-level initiatives and global regulations continue to set the tone. For example, California's climate disclosure regulations establish an expectation for corporate transparency around emissions and climate risk, inspiring similar legislative efforts in other states. Additionally, international frameworks like the CSRD demand alignment from global corporations, including non-EU companies operating in or serving European markets. Compliance with the CSRD is no small feat, involving over 1,000 new data points and requiring external audit and detailed digital disclosures, but it establishes a new global baseline for sustainability reporting that will drive broader market adoption for companies seeking to access European markets.

The global push for consistent, transparent sustainability data

Companies committed to transparency are positioning themselves as leaders in a world where sustainable practices are increasingly linked to value creation. According to SBTi, over 4,200 global companies have set climate targets. And 23,000 organizations report emissions data through CDP-that represents a staggering two-thirds of the global market cap.

In addition, 85% of global organizations surveyed by Morgan Stanley see sustainability as an opportunity. Our research shows that over 80% of companies surveyed not currently required to follow the CSRD still choose to align their reporting with it-demonstrating a clear commitment to sustainability and accountability.

Moving forward, no matter what

As global climate action accelerates, it's increasingly evident that sustainability reporting (and sustainability management) isn't a trend-it's a generational shift. While approaches to climate regulation may differ across administrations and governments, the impact of a holistic approach to sustainability management and transparent disclosure remains strong. Your bottom line depends on it.

Workiva's mission is to support organizations in achieving transparency, building confidence in data accuracy, and strengthening the systems required for integrated, reliable reporting. By committing to sustainability and integrated reporting, companies don't just respond to regulations-they equip themselves for long-term growth, build trust with stakeholders, and position themselves to lead in a rapidly changing global economy.

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