Eighty percent of leading companies around the world now report on sustainability, according to Big Four firm KPMG's 2020 Survey of Sustainability Reporting,
This year's report — now in its 11th edition — details the sustainability reporting of 5,200 companies, representing the top 100 companies in each of 52 countries. The report focuses on three key areas in studying companies' sustainability reporting this year: risks of biodiversity loss; reporting on climate change and carbon reduction; and reporting on the United Nation's Sustainable Development Goals.
Key findings in the report include:
- 80 percent of the top 5,200 companies now report on sustainability, up from 75 percent in 2017.
- One-quarter of the 52 countries polled by KPMG have a sustainability reporting rate of 90 percent or more.
- For the first time, more than 50 percent of companies are applying third-party assurance to their sustainability reporting.
- North America and Latin America combined have the highest regional sustainability reporting rates, ahead of Asia Pacific (84 percent), Europe (77 percent), and Middle East & Africa (59 percent).
- Latin America leads in the reporting of biodiversity-related risks.
- Approximately 40 percent of polled companies include financial risks of climate change in their reports.
- A majority of polled companies now have plans in place to reduce carbon emissions.
"I welcome that organizations all around the world increasingly understand the importance of disclosing their impacts on the economy, the environment and society," said Eric Hespenheide, chairman of the Global Reporting Initiative, in a statement in response to the report. "Not only are their stakeholders demanding it, they realize that improved sustainability performance leads to more resilient and effective business practices."
"While the continued growth in sustainability reporting is encouraging, more needs to be done to drive up the quality and depth of disclosure," Hespenheide added. "What is important is that companies apply the same rigor in communicating both sustainability and financial impacts. That is why GRI supports the mandating of sustainability disclosure, as being progressed by the EU, as well as the IFRS’ moves to ensure financial reporting reflects sustainability risks."
Keeping in line with its report, KPMG
For the full report, head to KPMG's
