ESG

Sustainability reporting has evolved from a nice-to-have to a must-do. For years, it’s been voluntary—a chance to show off green credentials. But now? Regulators and investors are upping the ante. KPMG’s 13th Survey of Sustainability Reporting couldn’t have landed at a better time. With mandatory reporting on the horizon for many countries, the survey offers a fascinating look at how global companies are preparing for this seismic shift—or not.

Last month, Deloitte released a report analyzing potential pathways to decarbonizing the steel industry. The report highlights the critical role of the value chain and collaboration in achieving decarbonization, alongside key hurdles and potential solutions for progressing toward net-zero emissions.

On December 10, Hong Kong took a big leap toward shaping its future as a global leader in green finance by unveiling a new roadmap for sustainability disclosure. The plan outlines how the city will guide publicly accountable entities (PAEs) toward adopting the International Financial Reporting Standards - Sustainability Disclosure Standards (ISSB Standards), setting a clear path to full implementation by 2028.

As we move into the 2024 financial year, big changes are on the horizon for large publicly listed companies. Thanks to the Corporate Sustainability Reporting Directive (CSRD), companies with over 500 employees are now required to significantly enhance how they report sustainability information. These changes, highlighted in the latest AFM (Dutch Authority for the Financial Markets) Market Watch report, will not only impact annual corporate reports but also extend to prospectuses and press releases, providing investors with clearer, more detailed insights into a company’s environmental, social, and governance (ESG) efforts.

Mark Twain famously said, “You’re never wrong for doing the right thing.” While Twain wasn’t contemplating Environmental, Social, and Governance (ESG) principles, his words resonate powerfully in a world where corporate behavior is under an unrelenting microscope. ESG is no longer a "nice-to-have." It’s a guiding ethos that challenges businesses to reconcile profitability with purpose—and to do so transparently, accountably, and authentically.

A new survey by PwC reveals that less than half of companies required to report under the EU’s Corporate Sustainability Reporting Directive (CSRD) in 2024 are fully confident in their ability to meet the directive’s ambitious sustainability reporting standards. Despite the widespread recognition of the directive's significance, just 42% of respondents from large companies required to report on sustainability by next year feel fully prepared. For companies due to report the following year, that confidence drops to a mere 14%.

German companies are eager to lead the way in global climate protection but are running into a familiar roadblock: unreliable policies and patchy incentives. That’s the recurring theme of the AHK Climate Protection Compass 2024, a report from the German Chamber of Industry and Commerce (DIHK) and the German Chambers of Commerce Abroad (AHKs).