As sustainability reporting comes out of its nascent phase, we are seeing many telling initiatives, especially in the EU. The US lags far behind on sustainability reporting in the developed world.
→The European Union has adopted a directive to mandate sustainability reporting starting in 2017. Under the new law, every company must report on environmental impacts, social matters, human rights, anti-corruption, and diversity if it meets the EU’s critical mass considerations: over 500 employees; either €20 million on its balance sheet or €40 million in turnover. Other criteria apply as well.
→In 2015 The World Federation of Exchanges issued “Enhanced Sustainability Guidance” to guide member stock exchanges on the voluntary disclosure of sustainability information for their listed companies.
→The 2016 report by Carrots & Sticks covered 400 different reporting instruments used by 64 countries, a sign of how active the sustainability reporting world. The size of this array makes it apparent that diversity rules every aspect of business and government and that there is great opportunity to find common points of reference when referring to sustainability. (Carrots & Sticks was organized in 2006 by KPMG International, Global Reporting Initiative, the United Nations Environment Programme (UNEP) and Centre for Corporate Governance in Africa / University of Stellenbosch Business School.)