ESG Reporting Gained Momentum, Yet Reporting Inconsistencies Linger

27 February 2023

A new report from the International Federation of Accountants (IFAC) and AICPA & CIMA shows that the largest global companies are making progress on environmental, social, and governance (ESG) reporting and related assurance.

95% of large companies reported on ESG matters in 2021, up from 91% in 2019, and 64% obtained assurance over at least some ESG information in 2021, up from 51% in 2019.

The report highlights inconsistencies and fragmentation in reporting standards and frameworks, which creates challenges for providing consistent, comparable, and reliable reporting. It is recommended that more companies should seek assurance to build trust and confidence in what they report.

Overall, the use of the Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate-Related Financial Disclosures (TCFD) framework has increased significantly between 2019 and 2021.

You can read the full article here.