ESG Report Standardization Accelerates: 2024 Data Shows Global Enterprises Moving Toward Unified Framework

ESG Reporting Standardization Accelerates: 2024 Data Shows Global Companies Shifting Toward a Unified Framework

Global sustainability reporting is moving from fragmentation to unification. According to the sixth annual *Global Sustainability Reporting and Assurance Benchmarking Survey* by the International Federation of Accountants (IFAC), the American Institute of CPAs (AICPA), and the Chartered Institute of Management Accountants (CIMA), companies worldwide showed a significant trend toward standardization in ESG information disclosure in 2024. Although the data has a two-year lag (latest data as of 2024), the report clearly notes that “results may underestimate the progress toward more uniform standards.”

Core Data: ISSB and ESRS Adoption Rates Double, Traditional Frameworks Recede

• This survey covers listed companies in major global economies. Key findings include:
• ISSB Standards: One-third (33%) of disclosing companies use or plan to use the International Sustainability Standards Board (ISSB) standards, more than double the 16% in 2023.
• European Sustainability Reporting Standards (ESRS): 20% of disclosing companies have adopted or plan to adopt ESRS—this figure was not separately tracked in 2023, reflecting the growing force of the EU’s Corporate Sustainability Reporting Directive (CSRD).
• Other Frameworks Decline: The Task Force on Climate-related Financial Disclosures (TCFD) framework, Global Reporting Initiative (GRI) standards, and the United Nations Sustainable Development Goals (SDGs) all saw usage drop by 1-2 percentage points.

“The global reporting ecosystem is transitioning from a fragmented landscape toward an increasingly structured, standardized, and integrated system,” the report states. “However, this transformation is not yet complete and may continue to be influenced by geopolitical and regulatory sentiments within the world’s largest economies.”

European Regulation as Driver: CSRD Becomes the Engine of Standardization

• The core impetus for this standardization shift comes from Europe. The EU’s CSRD, effective in 2023, requires approximately 50,000 companies—including non-EU companies listed in the EU—to disclose under ESRS. ESRS is highly interoperable with ISSB standards, which are endorsed by the International Organization of Securities Commissions (IOSCO). This positions Europe as the “rule-maker” for global ESG reporting rules.
• Improved Corporate Compliance Cost Efficiency: In the past, companies had to simultaneously navigate multiple frameworks such as GRI, TCFD, and SASB. The convergence of ISSB/ESRS now reduces the burden of duplicate disclosures.
• European Companies Lead the Way: With an ESRS adoption rate of 20% already in 2024, the figure is expected to rise rapidly after mandatory implementation in 2025, further consolidating the EU’s voice in global green finance.

U.S. Market: ESG Disclosure Rate Declines, but Auditing DeepensNotably, the U.S. market presents a contrast: in 2024, 95% of surveyed U.S. companies disclosed some ESG information, down 5 percentage points from 100% in 2023. However, the proportion of sustainability-related assurance engagements performed by audit firms rose to 32%, an increase of 4 percentage points year-on-year. This indicates that while political pressure has led some companies to reduce disclosure scope (e.g., anti-ESG bills in states like Florida), capital markets' demand for information reliability is instead driving growth in assurance services.