OECD report shows progress in sustainability disclosures and integration

The second OECD Global Corporate Sustainability Report shows that the world's largest listed companies now publish sustainability disclosures and integrate sustainability issues at the highest level of governance.

In 2024, 91% of listed companies by market capitalisation (29% of listed companies worldwide) published sustainability disclosures – up from 86% of market cap in 2022. A majority (88% of market capitalisation) disclosed Scope 1 and 2 emissions, and 76% also disclosed at least one category of Scope 3 emissions. 

This information is also increasingly assured by a third-party, with more than 5000 companies (42% of the total) getting their disclosures assured by an external service provider – though more than half (56%) relied on limited as opposed to reasonable assurance.

And after years being lost in the ‘alphabet soup’ of reporting standards, it seems the world is starting to converge around new and widely accepted norms.  

The Global Reporting Initiative (GRI) Standards remains the top framework, used by more than 6,500 companies, followed by the Task Force on Climate-Related Financial Disclosures (TCFD) (4,800 companies), and SASB Standards (nearly 3,500 companies). But more and more companies are using the International Sustainability Standards Board (ISSB) IFRS S1 and S2, while at least 1,800 companies listed in the EU will be using the European Sustainability Reporting Standards (ESRS) from 2025.

Beyond reporting: Board oversight and ESG-linked compensation

While the report confirms that investor demands and regulatory expectations are driving more disclosures worldwide, it also shows that listed companies are better integrating sustainability into business.

​​In 2024, the board had oversight of climate-related issues in 70% of companies by market capitalisation, up from 53% in 2022. Two-thirds of companies also have a committee in charge of overseeing sustainability risks. 

And an increasing share of companies also use a proven mechanism to deliver on their sustainability targets: 67% of those with variable executive compensation (by market capitalisation) link it to sustainability criteria (up for 60%).

However, investment in decarbonisation remains too slow: between 2015 and 2024, net cash inflow from operating activities rose by 32%, allowing listed energy companies to triple dividends and share buybacks, but at the same time net cash outflows for investing activities increased by less 5%. 

Regional and sector differences

The report also shows variations in sustainability disclosures and integrations between regions and sectors. Europe, Developed Asia-Pacific and the United States (93%) had the highest rates of disclosure at 98%, 94% and 93% of market capitalisation respectively. 

Sector-wise, energy companies have the highest rate of disclosure, covering 94% of the industry’s market capitalisation; the real estate sector has the lowest share at 78%.