Global sustainability reporting is becoming more aligned as many large companies move towards the International Sustainability Standards Board (ISSB) standards and European Sustainability Reporting Standards (ESRS), according to new research.
The findings were published in The State of Play: Sustainability Disclosure and Assurance (Six-Year Trends and Analysis, 2019-2024).
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The study was conducted by the International Federation of Accountants (IFAC), the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).
For this report, the IFAC, AICPA and CIMA reviewed around 1,400 companies across 22 jurisdictions.
The report said global companies still rely on a mix of sustainability standards and frameworks, but pointed to growing convergence.
In 2024, one-third of companies that disclosed sustainability information referred to current or planned use of ISSB standards, up from 16% in 2023.
Around 20% of companies reporting sustainability information said they use, or plan to use, the ESRS, indicating that EU implementation is influencing practices beyond the bloc.
References to the Task Force on Climate-Related Financial Disclosures, Global Reporting Initiative standards and UN Sustainability Development Goals each declined by single digits between 2023 and 2024.
On overall reporting, 97% of global companies surveyed in 2024 provided some form of sustainability disclosure, representing a “percentage drop” from the previous year.
During 2024, 75% of companies obtained assurance on their sustainability disclosures, compared with 73% in 2023.
Audit companies remained the primary providers of assurance on sustainability disclosures by large global companies.
More companies are also combining sustainability and financial reporting.
Sustainability disclosure in annual or integrated reports rose to 76% in 2024 from 74% in 2023.
Mexico, Singapore and Turkey recorded notable increases in the proportion of sustainability assurance engagements handled by audit practices in 2024.
In the US, just under a third (32%) of sustainability-related assurance work was performed by audit companies, up four percentage points from the previous year.
IFAC CEO Lee White said: “Around the world, we are seeing growing alignment behind high-quality sustainability reporting and assurance practices.
“This progress matters because trusted, decision-useful information supports better decisions, stronger organisations and more efficient capital allocation.”
