An updated report describes global sustainability reporting as “transitioning from a fragmented landscape toward one that is increasingly structured, standardised, and integrated.”
The annual report from the International Federation of Accountants (IFAC), and the AICPA and CIMA, The State of Play: Sustainability Disclosure and Assurance (Six-Year Trends and Analysis, 2019-2024), collected data from the 100 largest companies in six featured jurisdictions (including the UK) and the 50 largest companies in 16 other jurisdictions.
The report found that 97% of companies disclosed some sustainability information in 2024, with 75% of companies obtaining some level of assurance and 59% trusting audit firms as their assurance provider, up from 55% in 2023.
“Globally, in recent years we see that there is growing alignment of high-quality sustainability reporting and assurance practices,” IFAC CEO Lee White said in a news release. “This is important for the efficient allocation of capital. We expect that momentum to continue of trusted sustainability-related information for better decision-making.”
All 100 of the largest UK companies disclosed sustainability data for the second consecutive year, and the UK remained ahead of the curve with 86% of disclosing companies obtaining some level of assurance. The percentage of UK sustainability-related assurance reports that came from audit firms shot above the global average, moving from 47% in 2023 to 63% in 2024.
“The growing use of audit firms for sustainability assurance is a good sign for capital markets and investors,” Sue Coffey, CPA, CGMA, the AICPA’s CEO–Public Accounting, said in a news release. “Auditors have earned their reputation for trust and expertise, backed by strong education requirements and strict rules on independence and professional integrity.”
However, the report notes that the transition to standardisation “may continue to be challenged by shifting geopolitical and regulatory sentiment within some of the world’s largest economies.”
In the report, Turkey stood as an example of how standardisation can affect reporting and assurance trends. In 2024, 86% of the top 50 Turkish companies that disclosed sustainability data obtained some level of assurance — up from 67% the prior year — and 95% of assurance reports came from audit firms, soaring from 54% the prior year.
In 2024, Turkey implemented International Sustainability Standards Board (ISSB) standards — billed as the global baseline for sustainability reporting — and 96% of the Turkish companies in an analysis of 2024 company reports referenced the use or future use of ISSB standards. Globally, such mentions increased to 33% in 2024 from 16% the prior year.
Twenty per cent of global companies that disclosed sustainability information in 2024 referenced the use or future use of European Sustainability Reporting Standards with mandatory requirements being phased in for future reporting years.
— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.
