News Roundup: 75% of US Companies Mention Climate Risk in 10-Ks

CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.

Nearly 99% of 500 biggest U.S. companies voluntarily disclose Scope 3 emissions

As the SEC’s climate disclosure rules for public companies remain tied up in a legal fight, more than three-quarters (76%) 3,000 of the largest U.S. companies mentioned climate change as a risk in their annual financial reports, according to a new report from Diligent, a GRC software provider.

Diligent’s report, which features insights from Glass Lewis and Clarity AI, reveals several trends, including that companies are pressing forward on climate reporting despite the status of the SEC’s rules, which the agency voluntarily paused pending the outcome of lawsuits. The report also reveals that in some cases, companies are going even further than what was required by the SEC: About 99% of the 500 largest U.S. companies voluntarily disclosed Scope 3 emissions in 2022 and/or 2023, the report said. Scope 3 reporting was notably absent from the final disclosure rules, which the SEC approved in March.

Many of those companies may be obligated to follow other regulatory requirements, such as those in California and the EU regardless of whether the SEC’s rules go into effect.

“Regulatory developments are revolutionizing how companies globally are held accountable for their ESG policies and practices,” said Josh Black, editor-in-chief of Diligent Market Intelligence. “Given the increasing focus on director accountability for ESG, it’s important for leaders to be proactive in addressing ESG-related risks and opportunities.”

Survey: HR leaders say hiring & retention are getting easier

Just over half of human resources (HR) leaders say they struggle recruiting workers in 2024 compared to 83% who said the same at the peak of the Great Resignation in 2022, according to a new survey by The Conference Board. The survey also found that retaining workers has gotten easier, with just 41% saying they struggle now compared to a high of 66% in 2022.

Still, challenges remain, particularly for companies employing industry and manual service workers; 65% of HR leaders in that group say they struggle with recruitment compared to just 47% of those looking to hire professional and office workers. 

Flexibility that includes the option of remote work greatly improved retention, the survey found. Among organizations that allow employees to choose whether to work remotely or on-site, only 15% said they struggled with retention compared to 45% mandating on-site work.

“The steps companies have taken to attract workers are paying off, but more than half still report difficulty finding talent,” said Robin Erickson, vice president of human capital at The Conference Board. “To broaden the pool of job candidates, companies can not only accept alternative credentials but also open positions to remote workers — which has the added benefit of providing flexibility so they’re more likely to stay.”

BDO: Tax leaders cope with increasing demands, decreasing resources

Corporate tax strategists face growing demands but fewer resources, according to a new BDO survey that also found tax leaders expecting to play a critical role in informing business strategy.

The survey shows that organizations plan to increase their investment in tax risk management in 2024, citing an inability to keep up with regulatory changes, technology challenges and rapid growth. Just over one-third (36%) say they will invest in training, and 29% will invest in hiring.

A majority (56%) of tax leaders say that although they have a formal mandate to advance ESG strategy, they aren’t executing it effectively. More than half of respondents said they have begun implementing artificial intelligence (AI) and machine learning in the tax department, while another 35% plan to do so in the next year.