Unveiling the Global ESG Disclosure Landscape: Interim Findings

Our team is collaborating with an international organization responsible for providing platforms to encourage investments and efforts in ESG. We are creating a mapping document that outlines the overlap between global sustainability disclosure frameworks and the requirements under different jurisdictions.

Over the past month, we developed the mapping document template and conducted in-depth research on the ESG disclosure requirements of the G20 countries. While we are amidst our research and compiling our initial findings, the following are the three main findings based on my research on global ESG disclosure requirements.

First, the global trend of ESG disclosures is to make disclosure mandatory for listed companies and align with global standards such as GRI or ISSB. Many countries that previously did not require any ESG disclosures, such as South Korea, Japan, and Australia, are planning to make disclosures mandatory from around 2025. While the requirements will be country-specific, they will be based on either GRI or ISSB standards. It is interesting to see which of the global frameworks the countries choose to align with because the alignment shows whether the country focuses on single materiality (ISSB) or double materiality (GRI).

Secondly, the ESG disclosure landscape is gradually converging on both global and country levels. Many jurisdictions are opting to align with either ISSB or GRI standards. At the country level, for instance, the three stock exchanges in China have recently introduced a new joint disclosure requirement, slated to commence in 2026. Given that information disclosures can impose significant costs on firms when there are multiple frameworks in place, adopting a unified framework can reduce the burden of information disclosures while also compelling firms to take action toward sustainability. 

The third point is related to the roles financial authorities and stock exchanges play in mandating sustainability disclosures to firms. When researching the disclosure requirements of different jurisdictions, I began by examining the listing requirements of stock exchanges. Since mandatory listing requirements are based on laws and regulations, I then searched through the websites of financial authorities to find the underlying policies. While I initially thought that stock exchanges set the disclosure rules, it was interesting to find that most of the work is done by financial authorities; they establish the fundamental rules, and stock exchanges are responsible for building upon the laws and assisting listed companies in disclosing relevant information by publishing ESG reporting guidelines, etc.

Moving forward with our research, we discussed with our client the possibility of extending our initial schedule to develop the template of the mapping document. We determined that it is important to create a robust and useful template because it would be the core of our project and the subsequent work. Therefore, we proposed an additional week to create the template, and our client graciously accepted the change in schedule. I believe this kind of flexibility is necessary as we progress through the project. By constructing a robust template, we have managed to proceed with our research without the need to backtrack or reconsider the template.

I am gradually making progress in addressing the initial questions of the project: What does the ESG disclosure landscape entail? How do companies find incentives to pursue sustainability efforts and integrate ESG frameworks into their business strategies? Additionally, I aim to explore the long-term impact of sustainability-related disclosure on global sustainable development. In the remainder of the project, I hope to delve further into the disclosure landscape of G20 jurisdictions and create a useful decision mapping document.