Survey Finds 68% of Large U.S. Companies Now Have Dedicated Budgets for Sustainability Reporting

A new survey by ESG and EHS solutions provider EcoOnline shows that 68% of large U.S. companies now have dedicated budgets for sustainability reporting, underscoring the increasing prioritization of environmental and compliance initiatives. The survey, which gathered insights from 95 senior executives at U.S. companies with annual revenues exceeding $500 million, reveals a growing commitment to sustainability, driven not only by regulatory demands but also by the recognition of sustainability as a core value and business driver.

As the landscape of climate-related disclosure regulations continues to evolve, nearly all surveyed companies are planning to boost their spending on sustainability and compliance reporting. This proactive stance is evident as 93% of respondents confirmed the existence of dedicated budgets for these efforts, with specific allocations for areas such as hiring staff, investing in technology, and establishing robust processes for greenhouse gas (GHG) emissions reporting and other sustainability metrics.

In response to upcoming California laws SB 253 and SB 261, which mandate large companies to report on Scope 1, 2, and 3 GHG emissions and climate-related financial risks, companies are mobilizing to meet these new requirements. The survey highlights that 42% of respondents are setting aside additional funds to comply with these regulations, while 26% are directing board or C-suite resources toward staffing and technology needs. A further 25% are managing within their existing budgets.

The trend toward increased spending is set to continue, with 30% of companies planning to ramp up their sustainability reporting budgets within the next 12 months, 55% within the next 2-3 years, and 14% in the longer term. Only a small fraction, 1%, indicated no plans for budget increases in this area. Moreover, 76% of respondents are either planning or considering the implementation of dedicated software to enhance their sustainability reporting capabilities.

The survey also delves into companies’ approaches to Scope 3 GHG emissions reporting, with 37% of firms asking suppliers to self-report sustainability data, 80% providing reporting templates and requirements, and 13% adopting software solutions for better data management.

Interestingly, the survey found that companies are committed to advancing their sustainability initiatives regardless of regulatory pressures. All respondents indicated that they would continue to develop their sustainability programs even in the absence of new regulations. Anticipated benefits from these programs include positive impacts on revenue growth, reported by 74% of respondents, and brand value enhancement, expected by 95%.

The growing importance of sustainability within corporate governance structures is also evident, with 40% of companies assigning accountability for sustainability strategies to their boards or CEOs, and another 55% placing it under senior executives or dedicated sustainability departments.

Tom Goodmanson, CEO of EcoOnline, emphasized the significance of these findings, stating, “Our survey highlights a critical tipping point where U.S. companies are boldly moving beyond reactive compliance and penalty avoidance, embracing sustainability as a powerful engine for growth. While they are committed to these initiatives, the specifics of how they will achieve their goals remain uncertain. This underscores the need for clear strategies and robust technology solutions to navigate the evolving regulatory landscape and drive meaningful impact.”