Today, policymakers are on the precipice of adopting mandatory and regulated sustainability reporting and the reporting landscape is poised to change drastically. The findings in KPMG’s 2022 ‘Survey of Sustainability Reporting’ reflect on the current state of reporting and overarching business strategies that can enable companies to meet increasing regulatory expectations – all while creating impact and generating value for society.
Vietnam’s commitment to achieve net-zero carbon emissions by 2050 will require collaboration and action from players across the public and private sector. The Government needs to continue to make changes to the regulatory framework and corporations need to make voluntary commitments to support the Government’s ambition and to drive sustainable values.
KPMG in Vietnam and Cambodia
Highlights of findings:
The latest report from KPMG reveals that sustainability reporting has grown steadily, with 79 percent of leading companies providing sustainability reports
There have been marked improvements in companies reporting carbon reduction targets, but action remains too slow in key related areas, with less than half of companies currently recognizing biodiversity loss as a risk
Among the thousands of reports analyzed, less than half of the world’s largest companies are providing reporting on ‘social’ and ‘governance’ components of ESG
KPMG outlines a series of recommendations, including companies shifting from a narrative-driven approach and making better use of data to drive change and provide evidence of action
This year’s report has also highlighted some further challenges the world’s major companies are facing in their reporting on ESG. Among the thousands of reports analyzed, less than half of the world’s largest companies provided reporting on ‘social’ components (e.g. modern slavery; diversity, inclusion and equity; community engagement; and labor issues), despite an increasing awareness of the link between the climate crisis and social inequality. At the same time, less than half of companies disclosed their governance risks (e.g., corruption bribery and anti-corruption, anti-competitive behaviors or political contributions.) In addition, only one third of N100 companies have a dedicated member of their leadership team responsible for sustainability and less than one-quarter of these companies link sustainability to compensation among business leadership.
Nguyen Chi Hieu
Director, ESG Advisory
KPMG in Vietnam
The 2022 KPMG survey is one of the most comprehensive and authoritative pieces of global research on sustainability reporting, based on an analysis of financial reports, sustainability and Environmental, Social and Governance (ESG) reports, and websites from 5,800 companies in 58 countries, territories and jurisdictions.