GRI Standards Dominate Global Sustainability Reporting Landscape | Image Source: Globalreporting.org
AMSTERDAM (Netherlands), 29 November 2024 – Sustainability reports have become an integral part of the trade strategy, as ERM standards appear as a reference for such revelations around the world. A recent study, the KPMG Survey of Sustainability Reporting of 2024, reveals that nine out of ten reporting companies use GRI standards, highlighting their field in the field. The study, which examined the reporting practices of 5,800 companies in 58 countries, highlights a steady increase in the adoption of ERM.
According to the report, 71% of study firms (N100) use GRI standards, an increase of three percentage points over 2022. Among the world’s 250 largest multinationals (G250), the adoption rate is 77 per cent. At the regional level, GRI Standards continue to lead, with adoption rates of 75 per cent in Asia-Pacific, 71 per cent in Europe, 70 per cent in the Americas and 64 per cent in the Middle East and Africa. Some countries, such as Taiwan (100%), Singapore (97%) and Spain, Japan and South Korea (94%), have particularly high accession rates.
The study highlights the additional trends that show the changing nature of sustainability reporting. The independent guarantee for sustainability disclosure is gaining ground, with 54% of N100 companies and 69% of G250 companies seeking to validate their reports. This increase is consistent with the findings of the International Federation of Accountants (IFAC), which emphasize that ERM-based reporting is the most secure, thereby enhancing its credibility and reliability.
A particularly remarkable development is the increasing prevalence of “double materiality” assessments. Half of the G250 companies are now integrating this methodology, reflecting a growing awareness of the need to assess and disseminate not only financial risks and opportunities, but also the socio-environmental impacts of business activities. This change indicates further integration of sustainability considerations into corporate governance frameworks.
The study also highlights progress in specific areas of sustainability reporting. Over the past two years, the number of companies with carbon reduction targets has increased significantly. Although biodiversity information remains less common, it has increased since 2022, thanks to increased awareness of the role of biodiversity in global sustainability. The next EU Directive on Corporate Sustainability (CSRD) is expected to further accelerate these trends as companies prepare to meet mandatory reporting requirements in several countries.
The KPMG findings indicate that sustainability reporting practices are maturing globally, with companies responding to growing stakeholder demands for transparency and accountability. The role of ERM standards, particularly in establishing a coherent and internationally recognized framework, has been fundamental. As regulatory frameworks evolve and stakeholder expectations increase, businesses are likely to increase their commitment to broad and secure disclosure of sustainability.
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