The KPMG Survey of Sustainability Reporting is produced every couple of years. The latest edition published in 2022 provided analysis of the sustainability and Environment, Social and Governance (ESG) reports from 5,800 companies across 58 countries and jurisdictions.
The edition remains the most extensive to date, providing an in-depth report card on the state of climate reporting. The findings reveal sustainability reporting has grown steadily. There has been notable improvements but action remains too slow in key related areas.
KPMG Survey of Sustainability Reporting: Highlights
Businesses are increasingly recognising the role they need to play to achieve climate targets. The top 250 companies on the planet – the G250 – are almost all providing some form of sustainability reporting, amid 96% of this group reporting on sustainability or ESG matters.
Meanwhile, there has been a steady and consistent increase in reporting from the N100 (the top 100 companies in each country or jurisdiction analysed). 10 years ago, roughly two-thirds of the category provided sustainability reports. But currently, the figure stands at 79%.
Climate continues to dominate. 80% of the G250 and 71% of the N100 have been setting carbon reduction targets. But only 64% of G250 companies formally acknowledge climate change is a risk to their business, and less than 50% recognised biodiversity loss as a risk.
The KPMG survey also provides a regional picture. Iceland, South Korea and the UAE have seen significant growth in climate reporting since 2020. The Asia Pacific region leads in sustainability report, followed by Europe, the Americas, and the Middle East and Africa.
Climate reporting and ESG considerations
The 2022 report has also highlighted some additional challenges major companies are facing reporting on ESG. Less than half of the largest companies provided reporting on ‘social’ components, such as modern slavery and community engagement.
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It comes despite an increasing awareness of the link between climate change and social inequality. Less than half of companies disclosed their governance risks and one-third of N100 companies have a dedicated member of their leadership team responsible for sustainability.
