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The ESG (Environmental, Social, and Governance) has become one of the most important subjects discussed by companies, markets, and investors in recent years. This discussion has been changing the way that companies operate, and it is impacting the view that investors and stakeholders have over companies in different markets. Given this scenario, companies had to adapt quickly to the way they reported on ESG information.
And what is the level of maturity of ESG reporting in different markets?
This study aims to understand through a literature review over the subject, what are the most important items that a good reporting should have and how the different aspects of ESG are impacting the market and investors. Based on that, during the methodology session, we defined the list of items that will be considered in the qualitative assessment of the regulatory framework of markets and companies’ ESG reporting analysis.
In the first part of the results, we mapped what is the ESG reporting regulatory framework in each of the five selected markets: Brazil, France, Germany, South Africa, and the USA, and drew an ESG ranking for those countries. In the second part, we linked the regulatory framework to the ESG reporting analysis of the ten largest companies in each market and defined a ranking for the companies. In the third part of the results, we analyzed a different period in order to understand the evolution of the reporting over the years.
Based on the results we conclude that some of the selected markets are more developed than others on the ESG reporting and that this is a major driver on the information reported by companies inserted in each market. We also see a considerable evolution of reporting in all the markets, confirming that ESG is a requirement for all the public companies that operate in one of those markets.
We also highlighted that there are improvements that may be implemented by markets and companies in order to bring standardization, comparability, and transparency to ESG reporting.
