Sustainability Assurance Services

From a Niche to the Mainstream

Thomas Singer

The practice of sustainability reporting—the regular reporting of environmental, social, and governance (ESG) data—is quickly becoming the norm rather than the exception for global companies. In fact, this type of disclosure is now required of companies operating in several countries including, as of 2017, companies operating across the European Union. The European Directive on Nonfinancial Disclosure requires public companies with more than 500 employees operating in Europe to report on a variety of non-financial metrics, including environmental protection, social responsibility and treatment of employees, anticorruption and bribery issues, and diversity on boards of directors (Directive 2014/95/EU). Notably, these requirements also apply to non-European companies operating in Europe. Similar disclosure requirements are in place in other regions, and at least a dozen stock exchanges are beginning to require ESG disclosure as a listing rule, including the leading exchanges in India, South Africa, and Brazil.