Over the past three decades, sustainability reporting has been largely voluntary. KPMG’s surveys of sustainability reporting have offered meaningful insights on how to improve levels of disclosure for business leaders, sustainability professionals, and company boards.
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.
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.
It acts as a guide for those preparing their own organization’s sustainability report. It also supports investors, asset managers and ratings agencies who now factor sustainability or ESG information into their corporate performance and risk assessments.
The 2022 survey includes new topics that reflect the evolving nature of sustainability disclosures. New sections include the use of materiality assessments, along with reporting on social and governance risks. The findings indicate five major emerging trends in sustainability reporting:
- Sustainability reporting is growing incrementally with movement towards the use of standards framed by stakeholder materiality assessments
- There is increased reporting on climate-related risks and carbon reduction targets, in line with TCFD
- There is a growing awareness of biodiversity risk
- Reporting on the UN SDGs prioritizes quantity over quality
- Climate risk reporting leads, followed by social and governance risks.
Big shifts, small steps - Executive summary
96%
of G250 companies report on sustainability or ESG matters
64%
of the G250 acknowledge climate change as a risk to their business
Less than half of companies report on
biodiversity loss
GRI, TCFD and SDGs
form the most commonly used anchors for sustainability reporting
TCFD adoption nearly doubled in 2 years, going from
37% to 61%
among the G250
49%
of the G250 acknowledge social elements as a risk to their business, with Western Europe as the leading region
71%
of N100 companies identify material ESG topics
Fewer than half of G250 companies have leadership level representation for
sustainability
Survey of Sustainability Reporting
"Companies need to continue to make urgent progress with ESG reporting in a way that supports their short-term and long-term business objectives."
John McCalla-Leacy
Head of Global ESG, KPMG International and Head of ESG
KPMG in the UK
