Sustainability reporting by major companies around the world is showing significant growth, according to a new comprehensive study. The number of companies with an independent sustainability assessment has grown to 54% in the N100 and 69% in the G250, confirming IFAC’s analysis.
The number of “double-weight” assessments is growing, with half of the G250 companies now conducting them, indicating a greater understanding of the need to disclose environmental and social impacts in addition to financial risks and opportunities.
There are signs that the new European Sustainability Reporting Standards and the International Sustainability Standards Council’s IFRS-S2 will be implemented soon, while voluntary practices based on GRI standards continue to dominate.
Sustainability reporting is more relevant than ever. Understanding and disclosing important topics is a critical step in developing a robust sustainability strategy that underpins the broader business strategy and, of course, the management of risks and the capture of benefits. It is also clear that the emergence of new regulatory requirements and disclosure expectations will further encourage the spread of sustainability reporting practices.
