Companies are paying “lip service” to environmental sustainability in their annual reports according to a PricewaterhouseCoopers (PwC) report which predicts investors will demand evidence of green thinking in the future.

The accounting firm’s study of FTSE 350 companies found only 31% align sustainability measures with their key performance indicators, and many are reticent to provide about their “key dependencies”.

“Although the number of companies aligning their sustainability objectives with strategic goals has increased, many companies appear to pay lip service to this are of reporting,” the report said.

“With a growing recognition of the realities of climate change, stakeholders will increasingly seek evidence that companies have considered, and are responding to, the potential risks.”

The report found there’s room for improvement across FTSE 350 companies when it comes to narrative reporting. The Financial Reporting Council is preparing new guidance on narrative reporting likely to be released by the end of the year.