The status of global sustainability reporting

This week, we would like to share our notes on the Survey of Sustainability Reporting 2022 report published by KPMG. This study is published every two years and focuses on assessing the state, as well as the main trends, in sustainability reporting practices around the world.

Some of the most relevant findings are:

1. Of the 250 largest companies in the 2021 Fortune 500 list…

• 96% report ESG topics.
• 64% recognize climate change as a risk to their business.
• 49% recognize social elements as a risk to their business.
• TCFD adoption nearly doubled in the last two years, from 37% to 61%.
• Less than half of them have a sustainability representative on their Board of Directors.

2. Of the 100 largest companies by revenue in each of the 58 countries included in this study..

• 71% have identified material ESG topics.
• GRI, TCFD, and the SDGs are the most frequently used guidelines.

Other interesting findings:

1. ESG reporting practices continue to grow.
2. GRI remains the most widely used reporting framework, although SASB has gained relevance.
3. Climate change risk reporting is on the rise.
4. Risks associated with the destruction of biodiversity are increasingly being recognized.
5. Only 10% of companies report their progress on the Sustainable Development Goals (SDGs).
6. Most companies report only their positive contributions (and not their negative impacts) on the SDGs.
7. Reporting on environmental topics has grown more than reporting on social or governance topics.

Finally, the report emphasizes the fact that there is still no standardization of ESG indicators, so materiality analyses should continue to be the basis for sustainability strategies and reporting. If you are interested in analyzing how to manage your company’s sustainability reporting, Miranda ESG would be happy to help you.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.