Despite the short time frame, companies that have started disclosing their ESG performance are already experiencing business value from their proactive activities, with respondents reporting a positive impact across customer retention and recruitment (72%), generated cost savings (71%), increased insurance or credit agency engagement (72%), and reduced long-term risk (71%). Many also report improved employee morale (71%), recruitment (69%), and investor and stakeholder relationships (70%). Has ESG reporting already generated any of the below opportunities for your organization? Increased customer retention and recruitment 72% Beer insurance / credit agency engagement 72% Reduction of long-term risk 71% Generated positive media and brand awareness 71% Improved cost savings 71% Strengthening of partnerships 71% Improved employee morale 71% Improved investor and stakeholder relationships 70% Improved employee recruitment efforts 69% Failure to comply with new ESG requirements poses significant risks to the entire business. Decision makers believe that the financial impact of regulatory action would cause the greatest harm to their business (59%), but that is closely followed by concerns that investors would walk away (57%), sales would be lost (48%) and reputation dented (48%). Within the next 3 years, what do you believe would have the biggest impact if your organization fails to comply with ESG regulations? 59% 57% 48% 48% 45% 43% Financial impact Financial impact Loss of revenue Reputational Lack of consumer Challenges through negative through lack or sales damage confidence with recruitment regulatory action of investment WORKIVA  ESG REPORT FINDING 45