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.
75% of companies not required to comply with new EU directive plan to align reporting anyway
More than eight in 10 global business leaders (85%) plan to continue climate disclosures regardless of 2024 election outcomes or political changes in their countries, according to new Workiva research that also found three-quarters of companies not required to comply with the new EU Corporate Sustainability Reporting Directive still plan to align their reporting with it.
The ESG reporting provider’s survey of 1,600 global executives reveals that 97% believe integrated financial and ESG data helps identify performance gaps that enhance financial growth. Leaders remain committed to transparency, with 83% planning to disclose climate-related risks and 82% intending to disclose material impacts of those risks.
Regulatory expectations vary by region but show an upward trend, with 60% of UK executives anticipating new or expanded regulations in the next year, compared to 78% in Brazil and 80% in Singapore.
Other key findings:
- Inflation and interest rates (38%) top the list of factors expected to impact business reporting over the next two years.
- Most institutional investors (96%) agree that regulated sustainability disclosures enable more informed investment decisions.
“After 70+ national elections worldwide, a powerful shift is underway. Leaders are no longer just reacting — they’re proactively building resilience and adaptability into their strategies,” said Mandi McReynolds, vice president of global ESG and chief sustainability officer for Workiva.
Gartner outlines key steps for legal teams ahead of U.S. administration change
General counsel should take three specific actions to prepare for upcoming regulatory changes as a new U.S. administration takes office, according to new guidance from Gartner, a global research and advisory firm.
The recommendations come as organizations face growing concerns about regulatory complexity and its long-term impact on corporate strategy. The guidance emphasizes the need for legal teams to begin mapping potential government policy changes and assessing organizational exposure in advance of the transition.
Gartner’s recommendations:
- Legal teams should identify business-critical regulations and policies where significant differences between administrations are likely.
- General counsel should conduct informal assessments with business stakeholders to determine if early action is needed.
- Organizations should monitor new agency and cabinet appointments for early signals of potential regulatory shifts.
“In-house legal teams should start mapping out government policy changes now to better prepare for risks and opportunities that will impact the organization,” said Laura Cohn, director of research in the Gartner Legal and Compliance practice. “By assessing the organization’s exposure and response to significant changes and determining if early action is warranted, GC can help the business focus its scenario-planning efforts.”
The guidance notes that regulatory uncertainty has intensified even before the election due to recent Supreme Court decisions, making advance preparation particularly crucial for legal teams.
Nearly all business leaders report AI ROI gains, but infrastructure concerns mount
Virtually all senior business leaders investing in artificial intelligence (97%) report positive returns on their investments, with 34% planning to invest $10 million or more in 2025, according to new research from Ernst & Young.
The findings, from EY’s survey of 500 U.S. senior business leaders, reveal that companies committing 5% or more of their total budget to AI are seeing increased returns across multiple areas compared to six months ago, including operational efficiencies (84%, up from 77%) and employee productivity (83%, up from 76%).
However, the research also exposed significant challenges, with 83% of leaders saying their AI adoption would be faster with stronger data infrastructure in place. Two-thirds report their current infrastructure is actively holding back AI implementation.
Other key findings:
- Six in 10 leaders report growing interest in responsible AI practices over the past year, up from 53% six months ago.
- Half of senior business leaders report declining company-wide enthusiasm for AI integration.
- Forty-nine percent expect cloud computing to increase their organization’s energy consumption in the next year.
“Generative AI’s ‘terrible twos’ have been both volatile and shown incredible promise,” said Whitt Butler, EY Americas Consulting vice chair. “Leaders are banking on AI as the future but our research uncovered challenges like data infrastructure, which are holding back adoption.”
Bank compliance concerns ease but key challenges persist, survey finds
U.S. banking industry concerns over risk management and regulatory compliance have decreased from 2023 levels, with the Wolters Kluwer regulatory and risk management indicator score dropping 20 points to 99 in 2024, according to new research from the global information and software solutions provider.
The Consumer Financial Protection Bureau’s Small Business Data Collection Rule remains the top challenge, with 69% of respondents citing it as a high or moderate concern. Fair lending regulations and new Community Reinvestment Act requirements also ranked high among respondents’ concerns at 61% and 60% respectively.
Economic anxieties showed notable declines, with interest rate concerns falling from 74% to 53% and inflation worries dropping from 54% to 48%. However, manual compliance processes continue to hamper effectiveness, even as organizations increase their focus on technology solutions.
Other key findings:
- 64% of respondents anticipate increased investment in digital lending.
- Cybersecurity threats remain the top risk priority at 59%.
- 61% view reductions in regulatory burdens as unlikely.
- Manual processes are still used “often” by 42% of organizations and “sometimes” by 31%.
“While there have been some encouraging signs in banking this year including the diminished threat of a recession and the Fed’s lowering of interest rates, survey respondents continue to face significant economic and regulatory headwinds,” said Jason Keller, director of market strategy, compliance analytics at Wolters Kluwer Compliance Solutions.
