Growing demand for ESG reporting from investors, regulators, and other stakeholders is driving more companies to embrace ESG reporting as a tool for managing risks, building reputation, and improving long-term sustainability.
In 2020, over 80% of the world’s 250 largest companies disclosed their sustainability performance. Additionally, the number of companies reporting on ESG issues has grown each year, with CDP’s 2021 report finding that 10,000 companies, cities, states, and regions disclosed through its platform, up from 8,400 in 2020.
While ESG reporting is not yet required in the US, there are many global reporting standards and frameworks that companies can follow, including the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD), among others. By adopting these frameworks, companies can standardize their reporting practices and provide stakeholders with a more consistent and comprehensive view of their ESG.