The report finds that 86% of companies by market capitalisation disclosed sustainable-related information globally in 2022. Out of 43 970 listed companies globally with a total market capitalisation of USD 98 trillion, 22% (9 600 companies that represent a total market capitalisation of USD 85 trillion) disclosed sustainability‑related information. 

Out of the companies disclosing sustainability information by market capitalisation, two-thirds used external service providers to assure the information disclosed. The report recommends that regulators in regions where voluntary assurance is a common practice consider requiring large listed companies to obtain assurance over their sustainability-related information. Wherever high-quality assurance for all sustainability-related information disclosed might not be possible or is too costly, jurisdictions may require companies to obtain assurance of specific sustainability-related disclosures, such as greenhouse gas (GHG) emissions.

The growing urgency in managing climate‑related risks and opportunities has generated greater interest by investors about companies’ GHG emissions. Globally, listed companies representing 77% of market capitalisation disclosed scope 1 and 2 GHG emissions, while less companies reported scope 3 emissions in 2022. Furthermore, 70% of listed companies by market capitalisation disclosed a GHG emission reduction target and nearly half of them set 2030 as the target year globally.

Climate change is considered to be a financially material risk for listed companies representing two thirds of global market capitalisation. Holding the largest share of equity (41%) in the 100 listed companies with the highest disclosed GHG emissions, institutional investors have a strong role to play in emissions reduction. 

The report also shows that only a handful of listed companies currently disclose their investments in research and development related to new technologies that may contribute to the transition to a low-carbon economy. Yet regulators could consider requiring or recommending the disclosure of information relevant to investors to assess the potential of companies to develop greener technologies.  

POLICY RECOMMENDATIONS

— Sustainability-related disclosure frameworks may need to be flexible about the existing capacities of companies.

— Standard-setters should work together to make their standards as interoperable as feasible, reducing the costs for companies that must disclose sustainability-related information according to various standards.

— Regulators in regions where voluntary assurance is a common practice may consider requiring large listed companies to obtain assurance of their sustainability-related information.

— Wherever high-quality assurance for all sustainability-related information disclosed might not be possible or is too costly, jurisdictions may require companies to obtain assurance of specific sustainability-related disclosures, such as GHG emissions.

— Investors and regulators may need to pay special attention to whether executives can choose to hire the company’s external auditor to provide sustainability-related assurance without the approval of the board, the audit committee or shareholders.

— Whenever included in a company’s reduction targets, market participants and relevant stakeholders should consider ways to encourage the disclosure of scope 3 GHG emissions.

— Regulators may consider requiring or recommending the disclosure of information relevant for investors to assess the potential of companies to develop new technologies that may contribute to the transition to a low-carbon economy.

— The fact that institutional investors hold the largest share of equity in the 100 listed companies with the highest disclosed GHG emissions highlights the importance of corporate governance frameworks in facilitating and supporting shareholders’ engagement.

— Boards should ensure that companies’ lobbying activities are coherent with their sustainability-related goals and targets.

Related content: Rapport mondial sur la durabilité des entreprises 2024 - Avant-propos, Éditorial et Résumé