EQS Whistleblowing Survey 2024: European Legislation Drives Digital Whistleblower Protection

Driven by the implementation of the EU Whistleblowing Directive, the proportion of European companies with whistleblowing systems has risen from 85% to 96% in the past year, as per the EQS Group's Whistleblowing Survey 2024. Over 700 compliance officers across Europe were surveyed, revealing a growing reliance on digital channels: 81% of companies use a software system for whistleblowers.

Compliance with laws is the main factor for implementing these systems, with 92% of companies citing it as crucial. Interestingly, 46% of companies have been using their whistleblowing system for at least three years, indicating early adoption before the EU Directive's mandatory transposition in December 2021.

Only 4% of European companies have yet to establish a whistleblowing system, mainly due to exemptions under current regulations or resource constraints. Besides compliance, fostering a speak-up culture and preventing financial loss are significant motivations for companies to adopt whistleblowing solutions.

Whistleblowing channels are well-received by employees, with more than half of European companies reporting at least one whistleblowing instance in 2023. The majority of reports concerned human resources issues, followed by corruption, social standards, and data protection. Notably, 90% of companies allow anonymous reporting, a feature that does not increase the number of abusive reports.

Allowing external stakeholders access to whistleblowing channels is significant, especially for compliance with supply chain regulations. EQS Group highlights that concerns over unfounded reports from external stakeholders are largely unfounded and that such reports can benefit companies by quickly identifying and addressing irregularities.