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 organisation'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 prioritises quantity over quality
- Climate risk reporting leads, followed by social and governance risks.
Big shifts, small steps - Executive Summary
Survey of Sustainability Reporting 2022
We should start to see some progress over the coming year as organisations like the International Sustainability Standards Board (ISSB) rolls out new global standards for reporting. But, companies shouldn't wait to be told.
David Pace
Partner, Head of Advisory, KPMG in Malta
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