Sustainability reporting & the SEC climate rule in TMT
The SEC climate rule is accelerating the need to close the gap between sustainability reporting strategy and execution.
As global organizations face increasing regulatory pressure to disclose information about environmental, social and governance (ESG) impacts, risks, and opportunities, the vast majority of technology, media, and telecommunications (TMT) companies are set to spend more on sustainability initiatives over the next three years. Yet despite the opportunity to enhance financial performance, and the SEC climate rule that mandates reporting on climate-related risks, TMT organizations are facing real challenges with executing their ESG strategy.
KPMG conducted a deep dive on where organizations are investing in the coming years to maximize financial value while complying with disclosure requirements. For TMT companies, these areas are in ESG data collection and management tools as well as in employee training.
The tax function specifically is both a driver of, and measure of, sustainability. As such, tax is a crucial component of ESG planning and execution.
The challenges TMT organizations face integrating sustainability into their broader business structure center around internal silos and divergent priorities. To address these, many companies are planning to restructure teams and outsource core ESG reporting.
Key statistics about TMT companies
94%
will increase their ESG investment in the next 3 years
78%
believe they are ahead of their peers in ESG reporting
38%
still use spreadsheets to manage their ESG data
51%
plan to use AI to improve ESG data collection
72%
will outsource core ESG reporting in the next 3 years
Six steps to improve ESG reporting and strategic integration
There are several actions TMT organizations can take to close the gap between strategy and execution with sustainability and ESG initiatives.
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Sustainability reporting at TMT companies
Learn where TMT companies are investing in sustainability, their challenges, and steps to improve reporting.
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