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Engineering Companies Struggle with ESG Reporting: Insights from GEM 2024
The Global ESG Monitor (GEM) 2024 highlights the challenges engineering companies face in sustainability reporting. Despite their central role in promoting sustainability, engineering firms report only moderate quality, scoring 46 out of 100 on average, according to a study of 194 companies.
The engineering sector lags in providing detailed reports on crucial areas like value processes and climate resilience. The European Sustainability Reporting Standards (ESRS) framework further underscores these shortcomings, with average compliance at 42 percent.
Ariane Hofstetter, GEM co-founder, suggests leveraging market positions for transparent reporting. Michael Diegelmann of GEM emphasizes the need for more detailed and transparent sustainability disclosures, particularly with upcoming ESRS standards.
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