‘Business as usual’ for world’s top companies as they get ahead of mandatory sustainability reporting rules

95% of world’s top 250 companies now publishing carbon targets (2022: 80%)
More than half (56%) of the top 250 companies now have a sustainability leader (2022: 45%)
Almost one third (30%) of top 100 companies consider sustainability in leadership pay (2022: 24%)

KPMG 2024 Survey of Sustainability Reporting

With mandatory sustainability reporting nearly upon us, new research from KPMG reveals the world’s biggest companies are taking a proactive approach, with a significant increase in businesses already publishing ESG data, including carbon reduction targets.

First launched in 1993, the KPMG Survey of Sustainability Reporting is produced every two years, providing analysis of the sustainability and ESG reports from 5,800 companies across 58 countries and jurisdictions. With more than 180,000 items of data combined into a single dataset, the report offers a truly comprehensive review of current progress on ESG reporting by the world’s biggest businesses. The analysis includes data on ‘N100s’ – the world’s top 100 companies and the ‘G250’ – the world’s 250 largest companies by revenue based on the 2023 Fortune 500 rankings.

The findings of KPMG’s Survey of Sustainability Reporting 2024 indicate six major trends:

Reporting on sustainability and setting carbon targets has become part of business as usual. Both sustainability reporting and carbon targets have been adopted by almost all of the G250 global group of companies and four-fifths of the N100 groups.
Some companies have already changed practices in advance of the move to mandatory reporting on sustainability under the EU’s CSRD. The directive applies to an initial group of companies for reports on financial years ending from 31 December 2024, with some having until 2029 to publish their first compliant reports. However, some companies, mainly European-headquartered or with activities in Europe, are already preparing for CSRD such as by reporting material topics in accordance with the ESRS. Nearly half of European companies in the research already make disclosures using the EU Taxonomy.
Double materiality, required under CSRD, is now used by half of the largest companies. Nearly four-fifths of both the G250 and N100 groups use materiality assessments. The larger G250 companies are more likely to use double materiality processes that assess both impacts on society and the environment and how this affects their financial performance. Double materiality is the most complete form of materiality assessment and is a cornerstone of compliance with the EU’s CSRD, so some of those adopting it are likely to be doing so to prepare for it becoming mandatory.
Despite moves towards mandatory reporting, voluntary guidelines and standards remain widely-used. GRI remains the most popular standard, with three-quarters of G250 companies using it and nearly as high a proportion of the N100 groups. There have been bigger increases in use for both SASB and stock exchange guidelines over the last two years, although from lower bases. Their adoption varies significantly by country and region, with all surveyed companies in Saudi Arabia using its stock exchange guidelines and two-thirds of those in the Americas using SASB.
Reporting on biodiversity continues to increase. Around half of both the G250 and N100 groups now report on biodiversity, up from around one-quarter four years ago, although growth has been slower in the last two years. Significant differences between regions on adoption rates found two years ago have narrowed since, with companies in the Middle East and Africa moving closer to the global average.
Adoption of TCFD recommendations continues to rise. Nearly three-quarters of G250 companies report climate risks in line with TCFD.

The world is facing complex climate, social and geopolitical issues and addressing ESG priorities is more important than ever. The last two years have seen some companies and investors weakening and, in some cases, abandoning ESG commitments. However, KPMG’s Survey of Sustainability Reporting shows that the largest companies worldwide are engaged with at least some elements of its agenda, such as, by setting carbon reduction targets.

KPMG’s findings – and the fact that there are more sustainability leaders within executive teams at the boardroom than ever before – are clear evidence that we’re making solid progress on the journey toward greater transparency and positive corporate actions to address environmental, societal and governance challenges. An increasing number of today’s investors are now taking non-financial data just as seriously as financial data. The mainstream view today is that businesses that measure and report ESG risks – clearly and in-depth – are also likely to manage these risks better and deliver greater long-term value. 2025 is slated to be a milestone year for sustainability reporting. The Survey of Sustainability Reporting shows that companies are addressing the challenges and getting ahead of the new rules and regulatory frameworks. We are making noticeable progress with ESG reporting in a way that supports short-term and long-term business objectives. With years of analysis on the books, we are building an evidence base which shows how a robust sustainability reporting ecosystem helps businesses not only measure progress on executing their ESG strategy, but also drives value while mobilizing capital markets to help support the development of ever-increasing much-needed solutions to the many environmental and societal issues we face. The business world is making progress. Let’s keep going.

John McCalla-Leacy

Head of Global ESG

KPMG International

ESG provides insights into the long-term sustainability of a business, but despite some clear progress over the past few years in climate-related reporting, more needs to be done, particularly on the S and G. Companies continue to find it challenging to strike a balance in sustainability reporting, between a slant towards positive reporting of progress, and qualitative descriptions of impact on the environment, society and the business itself. Companies must find a way to consistently highlight and address both their positive and negative impacts.

Our research shows that sustainability reporting has become part of business as usual for almost all of the world’s largest 250 companies and a large majority of the top 100 companies in each country, territory or jurisdiction. The last two years have also seen significant increases in the proportion of companies publishing carbon reduction targets to levels equivalent to those for sustainability reporting. The proportion of companies reporting on biodiversity remains lower but has similarly increased since 2022. While next year will see some companies having to report on sustainability, our research shows that many others are commencing or increasing their work in this area voluntarily. There are excellent reasons to do so, whether to prepare for mandatory requirements or to offer better information to investors, customers, employees, regulators or other stakeholders.

Jan-Hendrik Gnändiger

Head of Global ESG Advisory

KPMG International

To read the report in full, click on the link below:

https://kpmg.com/xx/en/our-insights/esg/the-move-to-mandatory-reporting.html

For press requests, please contact:

Brian O’Neill
Global Media Relations
KPMG International
+44 7823 668 689 Brian.ONeill@kpmg.co.uk

About the KPMG Survey of Sustainability Reporting

This survey is based on detailed research by KPMG professionals representing 58 member firms, with each reviewing annual financial, integrated and ESG/sustainability reporting published by the largest 100 companies in their countries, territories and jurisdictions. With data from 5,800 companies, this year’s survey is the same size as 2022’s.

This makes it jointly the most comprehensive in the series, which has run since 1993. For each company, staff at a KPMG member firm have examined its most recent available report to gather up to 52 pieces of data using a standard questionnaire.

The responses from each country, territory and jurisdiction have been combined into a single dataset of more than 180,000 items which has been validated and analyzed to produce the results.

This report also draws on the expertise of KPMG subject matter specialists worldwide through interviews and other input. We have drawn primarily on reports published between 1 July 2023 and 30 June 2024. If a company did not report during this period we have used reports published since 1 July 2022 at the earliest.

If a subsidiary company reports on sustainability only through its parent or group company, we leverage the KPMG network and apply the parent company results to the subsidiaries as well. For example, in more than one case the group sustainability results for an international food and drink manufacturer have also been applied to some of its national subsidiaries.

Survey findings are based purely on analysis of publicly available information. No information was submitted directly by companies to KPMG firms.

About KPMG International

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KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

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