As businesses worldwide prepare for mandatory sustainability reporting, KPMG’s 2024 Survey of Sustainability Reporting highlights significant strides in corporate ESG practices. From increased adoption of carbon reduction targets to greater integration of sustainability into executive leadership, the report showcases a global shift toward transparency and accountability. Key Findings: 1. Surge in Carbon Targets: A remarkable 95% of G250 companies have now adopted carbon reduction goals, up from 80% in 2022. This growth reflects a commitment to addressing climate challenges. 2. Strengthened Sustainability Leadership: Over half (56%) of the G250 have appointed dedicated sustainability leaders, compared to 45% in 2022, emphasizing the integration of ESG strategies at the executive level. 3. Sustainability Tied to Pay: Leadership accountability is also on the rise, with 30% of top companies linking executive compensation to sustainability outcomes, an increase from 24% two years ago. Emerging Trends in ESG Reporting The report identifies six major trends reshaping sustainability reporting:
- Business as Usual: Sustainability reporting is becoming a standard practice for major corporations.
- Preparation for Regulation: Companies are preemptively aligning with mandatory reporting frameworks, especially in Europe, where the EU’s Corporate Sustainability Reporting Directive (CSRD) mandates double materiality assessments.
- Biodiversity Reporting Growth: Biodiversity is gaining prominence, with 50% of G250 companies now addressing this in their disclosures.
- Voluntary Standards Endure: Frameworks like GRI and TCFD remain popular, with significant adoption rates among top corporations.
Leading the Way European companies are at the forefront, with many already adhering to CSRD measures. Globally, voluntary frameworks such as GRI (used by 75% of G250 companies) and TCFD (embraced by nearly 75%) support climate-related transparency. Conclusion KPMG’s findings reveal that sustainability reporting is no longer optional—it is a vital part of business strategy. With mandatory reporting on the horizon, companies integrating ESG practices are positioning themselves for long-term success. As John McCalla-Leacy, KPMG’s Head of Global ESG, notes, the momentum is undeniable: “We are making noticeable progress… Let’s keep going.” This transformation underscores the need for continued innovation and collaboration to ensure businesses meet evolving global challenges.