The world’s largest companies are increasingly aligning their sustainability reporting with internationally recognised standards, signalling a shift towards a more consistent global reporting framework, according to a new study by the International Federation of Accountants (IFAC), the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).
The latest edition of The State of Play: Sustainability Disclosure and Assurance, which analyses reporting trends between 2019 and 2024 across G20 jurisdictions, suggests the sustainability reporting landscape is becoming more structured as companies prepare for mandatory reporting requirements under the International Sustainability Standards Board (ISSB) and the European Sustainability Reporting Standards (ESRS).
The report notes that while companies continue to use a range of sustainability reporting frameworks, the move towards globally recognised standards is gathering pace.
A third of companies that published sustainability disclosures in 2024 said they had adopted, or planned to adopt, the ISSB standards, up from 16% a year earlier. The increase follows the introduction of the standards in jurisdictions including Turkey for the 2024 financial year, with several other countries due to implement the requirements for reporting periods beginning in 2025.
Meanwhile, one in five companies said they had adopted or intended to adopt the ESRS, suggesting the European Union’s sustainability reporting regime is influencing reporting practices beyond its borders.
As adoption of the ISSB and ESRS frameworks increased, use of several long-established reporting frameworks—including the Task Force on Climate-related Financial Disclosures (TCFD), the Global Reporting Initiative (GRI) Standards and the UN Sustainable Development Goals (SDGs)—declined slightly between 2023 and 2024.
The report concludes that “the global reporting ecosystem is transitioning from a fragmented landscape toward one that is increasingly structured, standardized, and integrated”, although it warns that geopolitical and regulatory developments could still affect the pace of harmonisation.
Lee White, IFAC Chief Executive Officer, said: “Around the world, we are seeing growing alignment behind high-quality sustainability reporting and assurance practices. This progress matters because trusted, decision-useful information supports better decisions, stronger organizations, and more efficient capital allocation. We expect this momentum to continue as stakeholders increasingly recognize the value of reliable sustainability-related information.”
The study also found that sustainability reporting remains widespread among the world’s largest businesses, with 97% of companies publishing some form of sustainability disclosure in 2024.
Demand for independent assurance also continued to grow. Three-quarters of companies obtained assurance over at least part of their sustainability disclosures, up from 73% in the previous year, although most engagements were conducted at a limited assurance level.
Audit firms strengthened their position as the leading providers of sustainability assurance, carrying out 59% of assurance engagements globally, an increase of four percentage points compared with 2023.
Susan Coffey, CPA, CGMA, CEO of Public Accounting for AICPA and CIMA, said: “The growing use of audit firms for sustainability assurance is a good sign for capital markets and investors. Auditors have earned their reputation for trust and expertise, backed by strong professional certification programs and robust rules on audit, independence and professional integrity.”
The report also found that 76% of companies included sustainability information within their annual or integrated reports, continuing the trend towards integrating financial and non-financial reporting. Organisations that obtained assurance over sustainability information included in these reports overwhelmingly relied on their statutory auditor to perform the engagement.
Regionally, Mexico, Singapore and Turkey recorded some of the strongest growth in the use of audit firms to provide sustainability assurance. In the United States, audit firms performed 32% of sustainability assurance engagements, representing a modest increase on the previous year.
The research reviewed the sustainability reporting practices of around 1,400 companies across 22 jurisdictions, providing one of the most comprehensive global assessments of sustainability disclosure and assurance trends to date.
