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Centri’s Mihir Jhaveri Featured in Compliance Week: More Companies Enter “Discovery Phase” of ESG Reporting in 2023

Centri’s Partner and Risk & Sustainability Practice Leader, Mihir Jhaveri, is featured in a Compliance Week article: More Companies Enter “Discovery Phase” of ESG Reporting in 2023. The article discusses the increasing efforts in climate-related disclosure by organizations, particularly environmental, social, and governance (ESG) initiatives.

Compliance Week polled risk and compliance practitioners on their climate-related disclosure efforts as part of their annual “Inside the Mind of the CCO” survey. The survey reveals that more companies are expanding their “discovery phase” in ESG journeys. Of the 322 respondents, 128 must comply with the Securities and Exchange Commission’s proposed climate-related disclosure rule and/or the European Union’s Corporate Sustainability Reporting Directive (CSRD).

The most noticeable YOY improvements emerged in the categories of inaugural ESG reports and Scope 3 emissions data quantification, possibly indicating more organizations have transitioned from the earliest stage of building an ESG program to embarking on the intermediate stage of transforming sustainability objectives into measurable impact.

In all categories represented by the question “How has your firm begun preparing to make ESG-related disclosures?”, only 11 percent of respondents admitted their firm was not preparing for ESG reporting mandates at all.

“A lot of firms are getting themselves educated and doing research,” Mihir pointed out. “So, have they really started? No. When you start adding those numbers into the context, it’s a much larger number than 11 percent.”

Notably, 85% express confidence in meeting ESG reporting requirements within the first year, though Mihir cautions against overconfidence. “We don’t know when ‘Year 1’ is,” he said. “If it’s next year, there’s no way the majority of companies are going to be ready.”

Persistent challenges include data collection complexity, compliance with evolving laws, and a lack of leadership support. The role of compliance departments is seen as primarily supportive, but respondents highlight coordination issues and unclear responsibilities as obstacles. Senior executives’ perceived indifference to ESG goals is a recurring concern, with mid-level practitioners advised to emphasize the risks and opportunities associated with ESG integration into business strategies.

Whether your business has an ESG program in place or is in the process of developing one, it’s attracting increased scrutiny from stakeholders and regulators alike. Your statements and reports published around your ESG goals, targets, and achievements must be defined appropriately to avoid greenwashing and to be executed effectively. If you’re a board member, head of sustainability, or finance personnel in charge of ESG initiatives at your company, Centri can support you with the guidance needed to confidently move forward in your ESG journey. Contact us to learn more.

Mihir Jhaveri

Partner | Risk & Sustainability Practice Leader | CPA, CIA, CISA, CFE, CITP, CGMA

Mihir is a Partner at Centri Business Consulting and the leader of the firm’s Risk & Sustainability Practice. He has over 15 years of experience helping large Fortune 500 publicly-traded and private companies drive process improvement, minimize company risks, and enhance corporate governance. View Mihir Jhaveri's Full Bio