KPMG reveals that 96% of the world's top 250 companies have released ESG reports

The latest research report from KPMG points out that globally, companies have significantly increased their attention to environmental, social, and governance (ESG) issues. Among the 250 largest companies in the world (G250), as many as 96% have released ESG reports, and among the top 100 companies in various countries (N100), this proportion has also reached 79%. Enterprises in the Asia Pacific region have shown particularly outstanding performance in ESG reporting, with a reporting rate of up to 92%, ranking among the top in the world. Meanwhile, companies in the Middle East and Africa are gradually increasing their ESG reporting rates, demonstrating a growing concern for ESG issues.

The report further points out that large global corporations are actively responding to upcoming mandatory sustainability requirements, such as the European Union's Corporate Sustainability Reporting Directive (CSRD). To achieve this goal, companies are integrating ESG factors into their executive and board compensation systems and appointing dedicated sustainability leaders. KPMG surveyed the sustainability reports of 5800 companies in 58 countries and regions worldwide, and the results showed that more and more companies are setting climate goals and preparing for regulatory disclosure requirements related to sustainability.

Although most companies are still in the early stages of CSRD reporting, a few have started to refer to the European Sustainability Reporting Standard (ESRS) for reporting. In addition, the importance of dual materiality assessment by enterprises is constantly increasing, and more and more companies are starting to consider the risks and impacts of sustainability issues on themselves, as well as their impact on the environment and society.

In terms of biodiversity reporting, companies have also made significant progress. Since 2020, the number of companies reporting on biodiversity has almost doubled. Meanwhile, companies have shown a positive attitude towards using voluntary standards and frameworks for reporting, with the Global Reporting Initiative (GRI) standards still being the most popular choice. In addition, more and more companies are beginning to use the standards of the Sustainable Development Accounting Standards Board (SASB) and the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD) for reporting.

The report also found that almost all of the world's largest companies are now setting climate goals. 95% of G250 companies have announced their carbon reduction targets in 2024, which is significantly higher than the 80% in 2022. At the same time, the completeness of climate targets has also been improved, with more and more companies combining their carbon reduction targets with those of the Paris Agreement and planning to adopt scientific carbon reduction targets.

As sustainability and climate goal setting become a part of daily business operations, companies are increasingly emphasizing the appointment of leadership with a focus on sustainability and incentivizing sustainable development performance. More than half of G250 companies have established dedicated boards of directors or leadership teams responsible for sustainable development affairs, and this proportion has also increased in N100 companies. In addition, sustainability considerations are becoming increasingly important in the compensation of the board of directors or leadership team. Although the proportion of sustainability integration in compensation by American companies has decreased, the proportion of compensation linked to sustainable development has significantly increased in other regions.

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