Global Transparency in Sustainability Becoming the Norm
Investors and regulators are driving the push for transparency in sustainability. Environmental, Social, and Governance (ESG) reports are multiplying rapidly.
ESG Requirements Exploding
Investors want to know how companies manage climate change, diversity, supply chains, and governance, as these issues directly impact financial results. Today, 71 global stock exchanges have ESG rules, compared to 13 in 2015 (UN SSE, 2026). In 27 countries, ESG reporting is mandatory, including 16 emerging markets. The goal is to provide reliable, comparable data and put an end to greenwashing, directing more money towards genuine sustainability.
IFRS and Europe Converging
In January 2024, IFRS S1 and S2 standards will come into effect, focusing on climate and sustainability risks. Published by the ISSB, these standards are based on the TCFD and cover governance, strategy, risks, indicators, and objectives. Europe will follow with the ESRS (via CSRD), applicable to large companies from 2024, and later to listed SMEs and non-European companies operating in the EU.
Other Key Frameworks
- GRI: environmental, social, and economic impacts
- SASB: sector-specific standards (integrated into IFRS)
- Integrated Reporting (IFRS): long-term value
- SEC (USA, March 2024): climate risks, transitions, and emissions for listed companies
All of these frameworks revolve around governance, strategy, risks, and metrics. A common language is emerging, with the ISSB adopting the TCFD, marking the end of the chaos of multiple standards. This is a significant turning point.
Implications for Companies and Markets
For companies: solid data and strategic sustainability planning For markets: transparency equals competitiveness In 30 years, extra-financial reporting has evolved from a voluntary gadget to a global obligation. Sustainability is no longer just a communications tool, but a genuine indicator of performance and resilience.
