Accounting today ran an article last week that 80% of companies are reporting SDG’s in their financial statements. We talked about this in previous posts and podcasts when we discussed ESG reporting and how that is growing.
There is just more evidence of it now with this KPMG report. They have multiple partners and groups working on putting this report together for a reason.
You have to remember that the groups and organizations coming up with these standards are funded by corporations and large government organizations influenced by the corporations. These standards also help large businesses so of course they are going to report on them. It puts undue pressures on smaller businesses that might not be able to use the same materials or safeguards that large organizations arbitrarily establish.
As we’ve said in previous podcasts, this area is only going to grow as the climate change culture in society grows. Large corporations will only put more influence on these organizations to establish stricter rules to force out competition. With that, let’s get into the specifics of what is in this report.
– 80% of companies worldwide are now reporting on sustainability
-90% of companies in north america report on sustainability
-100% of the top companies in japan and Mexico report on sustainability
-40% of companies now acknowledge the financial risks of climate change in their reporting
– A majority of companies worldwide now have targets in place to reduce their carbon emissions. KPMG themselves even recently committed to be carbon neutral.
-Third party assurance of sustainability information in corporate reporting is now a common business practice
-GRI remains the dominant global standard for sustainability reporting. GRI stands for Global reporting initiative. Of course GRI will tell you how to use their standards if you pay them to tell you.
– Mining leads in the disclosure of biodiversity risk. This makes sense since they have the potential to impact the environment the most.
-North America companies leading the way in acknowledging climate risks in financial reporting