Global sustainability reporting edges towards uniform standards, study finds

Global sustainability reporting is becoming much aligned arsenic galore ample companies determination towards the International Sustainability Standards Board (ISSB) standards and European Sustainability Reporting Standards (ESRS), according to caller research.

The findings were published successful The State of Play: Sustainability Disclosure and Assurance (Six-Year Trends and Analysis, 2019-2024).

The survey was conducted by the International Federation of Accountants (IFAC), the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).

For this report, the IFAC, AICPA and CIMA reviewed astir 1,400 companies crossed 22 jurisdictions.

The study said planetary companies inactive trust connected a premix of sustainability standards and frameworks, but pointed to increasing convergence.

In 2024, one-third of companies that disclosed sustainability accusation referred to existent oregon planned usage of ISSB standards, up from 16% successful 2023.

Around 20% of companies reporting sustainability accusation said they use, oregon program to use, the ESRS, indicating that EU implementation is influencing practices beyond the bloc.

References to the Task Force connected Climate-Related Financial Disclosures, Global Reporting Initiative standards and UN Sustainability Development Goals each declined by azygous digits betwixt 2023 and 2024.

On wide reporting, 97% of planetary companies surveyed successful 2024 provided immoderate signifier of sustainability disclosure, representing a "percentage drop" from the erstwhile year.

During 2024, 75% of companies obtained assurance connected their sustainability disclosures, compared with 73% successful 2023.

Audit companies remained the superior providers of assurance connected sustainability disclosures by ample planetary companies.

More companies are besides combining sustainability and fiscal reporting.

Sustainability disclosure successful yearly oregon integrated reports roseate to 76% successful 2024 from 74% successful 2023.

Mexico, Singapore and Turkey recorded notable increases successful the proportionality of sustainability assurance engagements handled by audit practices successful 2024.

In the US, conscionable nether a 3rd (32%) of sustainability-related assurance enactment was performed by audit companies, up 4 percent points from the erstwhile year.

IFAC CEO Lee White said: "Around the world, we are seeing increasing alignment down high-quality sustainability reporting and assurance practices.

"This advancement matters due to the fact that trusted, decision-useful accusation supports amended decisions, stronger organisations and much businesslike superior allocation."

"Global sustainability reporting edges towards azygous standards, survey finds" was primitively created and published by The Accountant, a GlobalData owned brand.