ACCOUNTING & SUSTAINABILITY
Sustainability Reporting Across the Globe
KPMG has been tracking sustainability reporting since 1993, when only 12 percent of companies published sustainability reports. Today, according to KPMG’s most recent Survey of Sustainability Reporting 2024, 90 percent of large companies globally and 98 percent of the world’s 250 largest companies publish sustainability reports.
One of the most significant developments in recent years is the creation of the International Sustainability Standards Board (ISSB), which was established to meet growing investor demand for high quality, transparent, reliable, and comparable reporting on climate and broader environmental, social, and governance (ESG) issues.
Sustainability reporting frameworks, disclosure types, and regulations vary by region. For example, the European Union has implemented the Corporate Sustainability Reporting Directive (CSRD), which expands and replaces the earlier Non-Financial Reporting Directive (NFRD). The CSRD requires detailed ESG disclosures for large companies and listed small and medium-sized enterprises, aligned with the European Sustainability Reporting Standards (ESRS).
In the United States, there is currently no comprehensive ESG reporting requirement. However, the Securities and Exchange Commission (SEC) has proposed climate-related disclosure rules and continues to assess how ESG information can support investor decision-making.
As sustainability reporting becomes more globally standardized, accounting professionals must stay informed about emerging regulations and expectations.The visual below, from KPMG’s Survey of Sustainability Reporting 2024, illustrates regional differences and the continued growth of ESG reporting across sectors.
Key Global Trends in Sustainability Reporting
Key Takeaways from KPMG’s 2024 Report
The Global Reporting Initiative (GRI) remains the most commonly used sustainability reporting framework. It is adopted by 77 percent of the world’s largest companies and 71 percent of top national companies. Its use spans all major global regions, with the highest uptake in the Asia Pacific.
Integrated reporting, where ESG and financial disclosures are presented together in one report, is becoming more common. Around 82 percent of the largest companies now include sustainability information in their financial filings, signaling a shift toward more holistic reporting.
Assurance of ESG disclosures continues to grow, especially in Europe, where nearly 60 percent of companies seek third party verification. Rates are highest in countries like Japan, South Korea, and the Netherlands, where over 80 percent of companies provide assurance.
Double materiality assessments, which consider both the financial impact on the company and the company’s impact on people and the environment, are gaining traction. Half of the world’s largest companies now apply this method, and nearly 80 percent of all surveyed companies conduct some form of materiality analysis.
Learn about more sustainability concepts within this major.
ADVANCE YOUR KNOWLEDGE OF REAL ESTATE AND SUSTAINABILITY
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