IFAC State of Play Sustainability Assurance Disclosure

THE STATE OF PLAY:
SUSTAINABILITY DISCLOSURE & ASSURANCE

2019-2021 TRENDS & ANALYSIS
FEBRUARY 2023
FOREWORD
This marks our third annual benchmarking study of global • Stand-alone sustainability reports remain a popular format with financial statement audits—all based on rigorous and
practice in sustainability disclosure and its assurance. The for disclosure (especially in Canada, U.S., and jurisdictions widely accepted professional, quality management, and ethical
momentum behind enhancing corporate reporting with in Asia). But there are jurisdiction-specific trends toward standards. In fact, 70% of the time, companies that obtained
environmental, social, and governance (ESG) or sustainability reporting in annual reports and integrated reports, which sustainability assurance from a professional accountant engaged
information continues—demonstrated by our findings provide more connectivity between ESG and financial their statutory auditor to also review their ESG disclosures.
that 95% of large companies report on ESG and 64% of information and support integrated decision making within • However, in seven jurisdictions, non-accountancy service
companies now obtain assurance/verification over some of companies. providers performed a majority of assurance engagements,
the information they provided in 2021 (increasing from • While most reporting focuses on multi-stakeholder and albeit narrower in scope—focused on greenhouse gas or
91% and 51%, respectively, in 2019). societal matters, using or referencing the TCFD Framework other environmental metrics.
The need for a harmonized, global system for reporting decision- and SASB Standards has grown dramatically since 2019, As the ISSB, IAASB, IESBA collectively work to ensure
useful information is clearer than ever before given 86% of albeit unevenly around the world. their standards support high-quality sustainability
the companies reviewed employed multiple standards and • The rate of assurance has increased significantly from 2019 disclosure and assurance, the accountancy profession
frameworks to prepare and present sustainability information. to 2021, but most engagements remain narrowly focused must demonstrate to stakeholders why our profession is
We continue to believe this practice neither supports consistent, on greenhouse gas metrics. Little more than half (53%) of best placed to deliver assurance. We hope that this study
comparable, and reliable information, nor provides a foundation engagements encompassed a range of ESG disclosures. continues to serve as a foundation for evidenced-based
for globally consistent, high-quality sustainability assurance. conversations amongst policy makers, regulators, preparers,
• The International Auditing and Assurance Standards Board’s
New in this report, we examine the extent to which companies (IAASB) International Standard on Assurance Engagements and all users of sustainability information.
provide forward-looking information on climate: emissions 3000 (Revised) remained the most widely used assurance
reduction targets and plans for achieving them. While nearly standard. Kevin Dancey Susan S. Coffey
two-thirds of companies disclosed targets, they lag the rate Chief Executive CPA, CGMA, Chief Executive
at which companies report their historic greenhouse gas Assurance enhances trust and confidence in ESG information Officer, IFAC Officer – Public Accounting
emissions (97%). and the systems and controls used to collect and report AICPA & CIMA
data. It also supports informed capital allocation decisions.
Other key highlights in this report demonstrate important global We believe professional accountants are best positioned to
trends, as well as continuing jurisdictional differences. conduct engagements that connect sustainability assurance
2
MAPPING GLOBAL REPORTING AND ASSURANCE PRACTICES
For the third consecutive year, our analysis indicates
KEY FINDINGS: 2019 | 2020 | 2021
that while the frequency of reporting ESG information
91% 92% 95% 83% 82% 80%

is very high and the incidence of assurance is on an
upward trend, there continues to be a meaningful
difference between reporting and assurance rates.
reported some ESG information of assurance was limited
This study updates understanding, based on 2021
reporting, of market practice for the reporting and
assurance of environmental, social, and governance
(ESG or sustainability) information, globally. 1,350 51% 58% 64% 88% 94% 95%
companies across twenty-one jurisdictions were
obtained some level of assurance of firms applied ISAE 3000 (Revised)*
reviewed for 2021 (see Methodology Section).
* Including national assurance standards—such as the

AICPA's attestation standards—that are at least as robust
as ISAE 3000 (Revised), Firms applied ISAE 3000 (Revised),
63% 61% 57% 34% 39% 38%
or corresponding national standards, 96% in 2019, 96% in
assurance engagements conducted by firms of other service providers applied ISAE 3000
2020, and 99% in 2021.
(Revised)
Link to 2020 State of Play report
3
MAPPING GLOBAL REPORTING AND ASSURANCE PRACTICES - 2021
UNITED KINGDOM GERMANY TURKEY
99.0 81.8 36.4 99.0 73.7 95.9 88.0 52.3 69.0
ITALY
100 94.0 100
CHINA's mainland
93.0 36.6 50.0
SOUTH KOREA
CANADA
92.0 100 8.1
98.0 61.2 61.3
FRANCE JAPAN
UNITED STATES
100 98.0 98.0 99.0 68.7 46.6
99.0 81.8 15.3
SPAIN HONG KONG S.A.R.
MEXICO 98.0 93.9 98.0 100 52.0 34.5
86.0 46.5 85.0
SINGAPORE
100 38.0 56.5
ESG Reporting INDONESIA
Companies
100 32.0 50.0
BRAZIL
0% 100% 92.0 71.7 75.8 INDIA
Rate of ESG SAUDI ARABIA 100 49.0 47.1
Assurance ARGENTINA SOUTH AFRICA
76.0 13.2 71.4
64.0 25.0 89.0 96.0 62.5 46.9 AUSTRALIA
0% 100% 98.0 69.4 94.3
Assurance Provided
by Audit Firms or
Affiliated Firms
4
0% 100%
SCOPE OF REPORTING 2020 2021
AND ASSURANCE
Reporting: GHG Other Environmental Social Governance*

Most companies reported some information on REPORTING REPORTING REPORTING REPORTING
GHG, other environmental, social, and governance
sustainability matters. The percentage of companies
who provided information in all four of these ESG
categories examined in this study increased to 96%.
92% 97% 98% 99% 96% 100% 95% 100%
Assurance: ASSURANCE ASSURANCE ASSURANCE ASSURANCE

Companies who obtained assurance still focused
primarily on GHG data, but the scope of information
being assured increased. 53% of companies 95% 94% 78% 82% 68% 74% 43% 56%
obtained assurance on information in all four of
the ESG categories examined in this study.
REPORTING ASSURANCE
89% 96% 43% 53%

* Governance does not include remuneration (or other) All Topics
information that is statutorily required to be reported
and assured in some jurisdictions
5
REPORTING
6
SUMMARY CHANGES: REPORTING
METHOD OF REPORTING. The use of stand-alone sustainability reports has declined globally over the 2019-2021
reporting periods, with Canada, China's mainland, Hong Kong S.A.R., South Korea and the U.S. being notable exceptions.
Elsewhere ESG reporting in integrated reports (Brazil, France, Japan, India, Turkey, Singapore) and annual reports (Germany,
Spain, Saudi Arabia, Indonesia, and Singapore) has increased. (See page 8 for more information.)
STANDARDS & FRAMEWORKS.

The use of / reference to the Sustainability Accounting Standards Boards (SASB) Standards and the Task Force on
Climate-related Financial Disclosure (TCFD) Framework increased significantly.
SASB increase of TCFD increase of
1,283 of 1,350 companies reported ESG information

in 2021 (compared to 1,283 of 1,400 in 2020).
29% 30%
over 2020 over 2020
increasing from
The use of / reference to Global Reporting Initiative (GRI)
Standards and the UN Sustainable Development Goals
(SDGs) remained high (comparing 2020 to 2021) among 72% to
74% (GRI)
the companies that reported on ESG. increasing from
76% to
79% (SDGs)
7
CHANGES IN WHERE
COMPANIES 2019 57% 18% 16% 9%
REPORTED ON ESG 2020 51% 20% 21% 8%
2021 50% 24% 21% 5%
Over the three year period, fewer companies

Sustainability Report Annual Report Integrated Report No Report
relied on stand-alone sustainability reports
while use of integrated and annual reports 100% AMERICAS EUROPEAN UNION OTHER EMEA ASIA-PACIFIC
for ESG disclosures increased.
95% AVERAGE RATE OF REPORTING
Use of Integrated Reports surged in France

from 2020 to 2021 (up 44%). 30 of the 50
companies reviewed included ESG information
in a report consistent with the Integrated 50%
Reporting Framework.
Globally, the number of reporting companies

has steadily increased.
In Saudi Arabia, reporting on ESG increased

24% in 2021, primarily in annual reports. 0%
BRAZIL MEXICO FRANCE ITALY SAUDI TURKEY AUSTRALIA HONG KONG INDONESIA SINGAPORE
ARABIA S.A.R.
ARGENTINA CANADA USA GERMANY SPAIN SOUTH UNITED CHINA’S INDIA JAPAN SOUTH
AFRICA KINGDOM MAINLAND KOREA
8
STANDARDS SASB Standards – Jurisdictional reference or use of SASB Standards during 2021
AND 100% AMERICAS EUROPEAN UNION OTHER EMEA ASIA-PACIFIC
FRAMEWORKS
50% 49% 49% AVERAGE RATE OF REPORTING
38%
Usage of SASB Standards and the TCFD
Framework has increased significantly 15%
between 2019 and 2021—albeit not to the
0%
same extent across all jurisdictions.
2019 2020 2021 BRAZIL MEXICO FRANCE ITALY SAUDI TURKEY AUSTRALIA HONG KONG INDONESIA SINGAPORE
ARABIA S.A.R.
Companies in the Americas and Europe have ARGENTINA CANADA USA GERMANY SPAIN SOUTH UNITED CHINA’S INDIA JAPAN SOUTH
steadily adopted while companies in the Middle AFRICA KINGDOM MAINLAND KOREA
East, and parts of Asia have lagged. TCFD Framework – Jurisdictional reference or use of TCFD Framework during 2021
100% AMERICAS EUROPEAN UNION OTHER EMEA ASIA-PACIFIC
63%
50% 48%
24%
0%
The percentage of ESG reporting framework/standard is 2019 2020 2021 BRAZIL MEXICO FRANCE ITALY SAUDI TURKEY AUSTRALIA HONG KONG INDONESIA SINGAPORE
ARABIA S.A.R.
calculated as the number of reports that disclose the use
of a specific framework/standard vs. the total number of ARGENTINA CANADA USA GERMANY SPAIN SOUTH UNITED CHINA’S INDIA JAPAN SOUTH
reports that include ESG information (1283). AFRICA KINGDOM MAINLAND KOREA
9
STANDARDS GRI Standards – Jurisdictional reference or use of GRI Standards during 2021
AND 100% AMERICAS EUROPEAN UNION OTHER EMEA ASIA-PACIFIC
FRAMEWORKS 69% 72% 74%

50%
86% of companies now use / reference

more than one reporting standard or
framework. 0%
2019 2020 2021 BRAZIL MEXICO FRANCE ITALY SAUDI TURKEY AUSTRALIA HONG KONG INDONESIA SINGAPORE
Multiple Standards ARABIA S.A.R.
100%
86% SDG Goals – Jurisdictional reference or use of SDG Goals during 2021
80%
68%
76% 79%
50%
62%
50%
0% 0%
2019 2020 2021 2019 2020 2021 BRAZIL MEXICO FRANCE ITALY SAUDI TURKEY AUSTRALIA HONG KONG INDONESIA SINGAPORE
ARABIA S.A.R.
10
FORWARD-LOOKING
DISCLOSURE
11
SETTING AND
GETTING TO CLIMATE 67% of companies reviewed in 2021 disclosed emissions reduction targets
REDUCTION GOALS
100%
Carbon neutral or net zero?
The terms "carbon neutral" and "net zero" are often

used interchangeably - leading to inconsistencies in 34% 33% No Target
what stakeholders understand about what is or is not
included in an entity's emissions reduction target.
This report highlights targets intended to achieve GHG target that does not achieve carbon
zero emissions (i.e., identified by the green sections 18% Other Target
50% 23% neutrality or net zero.
of the graph).
Scope 3 disclosures vary. Companies may include all GHG target that reaches carbon neutrality
27% Net Zero
15 categories from the GHG Protocol standards, only or net zero emission in operations.
Scopes 1 + 2
material categories, or only select categories of Scope 27% (i.e., Scope 1 + 2)
3 emissions. A detailed analysis of Scope 3 emissions
was not included in this analysis. GHG target that reaches carbon neutrality
22% Net Zero
16%
or net zero emission in the value chain.
Scopes 1, 2 + 3
GETTING TO NET ZERO
BENCHMARKING EMISSIONS TARGETS AND TRANSITION PLANS
0% (i.e., Scope 1, 2 + 3)
A Global Review of Corporate Disclosures
Click to view 2020 2021

Net Zero report
2021 is based on 1,350 companies from 21 jurisdictions.

2020 is based on 600 companies from 15 jurisdictions.
12
SETTING NET ZERO
49% of companies reviewed in 2021 set a net zero emissions reduction target
REDUCTION TARGETS
Scopes 1, 2 + 3 Scopes 1 + 2 Other Target No Target
There is little regional variance in setting
emissions reduction goals other than a
slightly higher rate, 58%, of net zero 58%
targets - either Scopes 1 + 2 or EU
Scopes 1, 2 + 3 - in the European Union.
However, companies in G7 jurisdictions 50%

were more likely to disclose net zero EMEA
targets.
50%
• 68% disclosed a net zero target 49%
compared to 40% from non-G7 Overall
jurisdictions.
Political and societal mandates, and other 49%

market incentives, may play a role in the AM
level of voluntary disclosure observed
by the largest companies in the G7
44%
jurisdictions . AP 0%
ARABIA S.A.R.
13
CREATING EMISSIONS
REDUCTION PLANS
Transition Plan No Transition Plan
100%
87% of companies reviewed in 2021 with
AMERICAS EUROPEAN UNION OTHER EMEA ASIA-PACIFIC
an emissions target also provide information 87% OF COMPANIES

about how they plan to reach the target.
However, companies may state their goal is

"net zero by 2050" or "operationally neutral
by 2050" without specific detail about how 50%
the stated plan will achieve the goal.
0%
ARABIA S.A.R.
14
ASSURANCE
15
SUMMARY CHANGES: ASSURANCE
ASSURED ESG INFORMATION.
The percentage of companies that obtained assurance on
some of their ESG reporting increased from:
51% to
58% to
64%
in 2019 in 2020 in 2021
The six jurisdictions with the largest 3-year increases are Hong Kong S.A.R., Italy, Japan, Singapore, Turkey, and the United Kingdom,
while Hong Kong S.A.R., Japan, and the U.K. posted the largest single-year increases in 2021.
WHO PROVIDES ASSURANCE. ASSURANCE STANDARDS.

The International Auditing and Assurance Standards Board’s
Of engagements (i.e., 516 of 913
57%
(IAASB) International Standard on Assurance Engagements
assurance reports from 818 companies) (ISAE) 3000 (Revised) remained the most widely used
were conducted by audit firms in 2021
standard for ESG assurance engagements:
68% 72% 70%

61% assurance reports from 741 companies)

to to
in 2019 in 2020 in 2021

63%
95% of firms* (or their affiliates) used ISAE 3000 (Revised), while
assurance reports from 645 companies)
non-IAASB standards were most commonly used by the other
services providers (i.e., only 38% used ISAE 3000) during 2021.
* Including national assurance standards—such as the AICPA's attestation standards—that are at least as robust as ISAE 3000 (Revised),
Firms applied ISAE 3000 (Revised), or corresponding national standards, 99% in 2021.
16
RATE OF
ASSURANCE BY
2019 2020 2021
JURISDICTION
64% OF THE COMPANIES THAT

DISCLOSED ESG DATA OBTAINED
ASSURANCE IN 2021. 64% 2021 AVERAGE
The percentage of assurance is based on the number 50% 58% 2020 AVERAGE
of companies that obtained assurance over reported 51% 2019 AVERAGE
ESG information (818) vs. the total number of
companies that reported ESG information (1,283).
If a company obtained more than one assurance
report (i.e., there were multiple metrics or information
individually verified), that company is only counted
once. Reviews, verification statements, and other
similar items were not counted as assurance reports. 0%
BRAZIL MEXICO FRANCE ITALY RUSSIA SOUTH UNITED CHINA’S INDIA JAPAN SOUTH
ARGENTINA CANADA USA GERMANY SPAIN SAUDI TURKEY AUSTRALIA HONG KONG INDONESIA SINGAPORE
ARABIA S.A.R.
17
TYPE OF FIRM
On average, 57% of assurance in 2021 was performed by audit firms
PROVIDING ASSURANCE
Audit Firm* Other Service Provider
BY JURISDICTION
Largest Audit Firm Market Share (2019-2021):

Increase Decrease
Indonesia 17% South Africa 20%
Hong Kong, S.A.R. 11% United Kingdom 17%
57% 2021 AVERAGE
Mexico 11% India 16% 50%
Japan 16%
The number of assurance engagements performed

by firms continues to grow (516 in 2021 from 505
in 2020), but firm market share continues to decline
(57% from 61%). In 2021, other service providers
(OSPs) had a majority market share in seven 0%
jurisdictions (Hong Kong S.A.R., India, Japan,
South Africa, South Korea, the U.K., and the U.S.). BRAZIL MEXICO FRANCE ITALY SAUDI TURKEY AUSTRALIA HONG KONG INDONESIA SINGAPORE
ARABIA S.A.R.
Assurance provider is calculated as the number of
assurance reports signed by firm type vs. the total
number of assurance reports. *An Affiliated Firm is an independent entity that is associated with a specific audit firm (typically the local audit firm member
of a global network). Audit firms and their affiliates have been combined in the data above.
18
LOCATION AND LEVEL
OF ASSURANCE LEVEL OF ASSURANCE - 2021 Limited Moderate Reasonable Other
Total population 80% 10% 7% 2%

97% of audit firm-related engagements resulted
in limited assurance reports. In contrast, 58%
of engagements conducted by other service
providers resulted in limited assurance.
Audit firms 97% 2% 1%
• Higher rates of assurance from other service

providers (OSPs) in Asia-Pacific resulted in more Other service providers 58% 22% 15% 5%
moderate and reasonable assurance.
0% 50% 100%
ASSURANCE RATE BY REPORT TYPE

Assurance rates are increasing across all 2019 2020 2021
52% 57% 65%

report types.
Sustainability Report
• Many jurisdictions that have high rates of
integrated reporting also have high rates of
assurance—e.g. the assurance rate is 98% in
Annual Report 35% 45% 50%
France and 72% in Brazil in 2021.
Integrated Report 64% 70% 77%
19
ASSURED ESG
INFORMATION GRI SDG
BY REPORTING 2019 2020 2021 2019 2020 2021
FRAMEWORK OR
STANDARD 37% 38% 39% 2% 1% 1%
Information disclosed in accordance
with GRI Standards is assured 322 of 871 350 of 926 370 of 949 17 of 789 9 of 979 11 of 1,011
more often than any other reporting
framework or standard.
SASB TCFD
While the SDGs are the most commonly cited
reporting framework (79% in 2021), this
2019 2020 2021 2019 2020 2021
information is not the subject of sustainability
assurance engagements.
Information disclosed in accordance with 4% 9% 7% 3% 3% 3%

the Greenhouse Gas (GHG) Protocol and
jurisdictional standards in Europe are commonly
the subject of assurance: 8 of 192 42 of 485 46 of 623 9 of 307 20 of 619 24 of 804
• GHG Protocol 145 assurance reports

• EU standards 116 assurance reports Percentages are calculated as the number of times an ESG framework/standard was referenced in an assurance report divided by the total number
of times the framework/standard was referenced for ESG reporting.
20
STATUTORY
AUDITORS VS.
2020 Same Firm 2021 Same Firm 2020 Different Firm 2021 Different Firm
ESG ASSURANCE
100%
PROVIDERS
AMERICAS EUROPEAN UNION OTHER EMEA ASIA-PACIFIC
70% of 516 70% 2021 AVERAGE
ESG assurance reports reviewed in

2021 provided by audit firms were 50%
from the same firm as the statutory
audit provider for the same reporting
entity - a slight decline from 71% of
505 in 2020.
0%
BRAZIL MEXICO FRANCE ITALY RUSSIA SOUTH UNITED CHINA’S INDIA JAPAN SOUTH
ARABIA S.A.R.
Statutory audit firm data was only collected for 2020 and 2021.
21
DAYS BETWEEN
STATUTORY 120 AMERICAS EUROPEAN UNION OTHER EMEA ASIA-PACIFIC
2020 2021
AUDIT AND ESG
ASSURANCE
The global gap between when statutory audit
reports are issued and sustainability assurance
reports are issued decreased to — 51 days in
2021 from 54 days in 2020. 60
Asia-Pacific saw the most improvement –

decreasing to 61 days in 2021 from 73 days
in 2020.
The assurance lag worsened in the Americas –

increasing to 92 days in 2021 from 89 days
in 2020.
0
Average 2021 BRAZIL MEXICO FRANCE ITALY RUSSIA SOUTH UNITED CHINA’S INDIA JAPAN SOUTH
Average 2020
Some jurisdictions may have different deadline requirements for statutory ARABIA S.A.R.
reporting versus voluntary disclosures, which can impact the time between
the date of the statutory audit report and ESG assurance report(s).
Statutory audit information was only collected for 2020 and 2021.
22
JURISDICTION
PROFILES
23
ARGENTINA
DISCLOSURE ASSURANCE
Region: • Lowest rate of emissions reduction • One of two jurisdictions with a decreased
AMERICAS targets (14%) globally assurance rate (-6%) over three years
SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

Report types Number of assurance reports
9 12 9
reported 2021 28% 26% 10% 36% assured
some ESG some ESG Firm assurance 100% 92% 89%
information information
2020 38% 6% 16% 40% Limited assurance 100% 100% 100%
2021 2021
2019 Use statutory Firm 64% 88%
64% 40% 10% 48%
25%
2%
32 of 50
Sustainability Annual Integrated No Report
8 of 32
Assurance lag (days) 66 49
Reporting standards / frameworks Assurance standards
2020 100% 2020 100%
100% 100%
60% 87%
84%
78%
81% 37% 92%
89%
30 of 50 77% 11 of 30
73% 73%
69%
2019 50% 2019 50% 56%

44%
52% 43%
33%
31% 33%
26 of 50 8 of 26 22%
19%
17% 11%
15%
8%
0% 8% 0%
GRI SASB SDG TCFD Multiple ISAE 3000 ISAE 3410 AA1000 ISO 14064 Other
* A company may have more than one assurance report 24

AUSTRALIA
Region: • Second highest rate of net zero • Highest audit firm assurance market
ASIA-PACIFIC emissions targets (76%) globally share (94%) in Asia-Pacific

28 35 35
2020 64% 20% 16% Limited assurance 100% 97% 91%
2021 2021
98% 72% 14% 14%
69%
49 of 50
34 of 49
2020 100% 2020 100%
100% 100% 94%
100% 68%
90%
86%
82%
84% 88%
50 of 50 80% 71% 34 of 50
76%
72%
70%
2019 2019
62%
50% 50%
54%
43%
100% 56% 43%
29%
50 of 50 28% 28 of 50
6% 6%
12% 11% 4% 3%
0% 0%

BRAZIL
Region: • Highest rate of Integrated Reporting • Second shortest assurance lag (60 days)
AMERICAS (46%) in the Americas in the Americas

25 31 33
2020 40% 48% 8%
4%
Limited assurance 88% 97% 94%
2021 2021
92% 46% 8% 36% 10%
72%
46 of 50
33 of 46
2020 100% 2020 100%
91% 93%
92% 67%
98%
96% 88%
93% 85% 91% 85%
88%
87%
82% 84%
46 of 50 31 of 46
64%
2019 50%
61% 52% 2019 50%
50%
90% 53%
45 of 50 24 of 45
18% 9%
6%
3% 3% 3% 10%
0% 0% 8% 8% 8%

CANADA
Region: • Highest use (96%) of standalone • Largest three-year decline (-14%) in
AMERICAS Sustainability Reports Audit Firm assurance market share in
the Americas

24 30 31
reported 2021 96% 2% 2% assured
2020 94% 2% 4%
2021 2021
98% 92%
61%
2% 6%
49 of 50
30 of 49
2020 100% 2020 100%
92%
96% 58%
90%
82% 89%
85%
73% 81% 76%
48 of 50 79% 28 of 48
72% 71% 71%
2019 50% 55%

60% 2019 50%
58% 60%
48%
94% 45% 33%

40%
33%
35%
47 of 50 21 of 47 19% 27%
15%
4%
0% 0%

CHINA's mainland
Region: • Third largest three-year sustainable • Shortest assurance lag (17 days)
ASIA-PACIFIC reporting growth (14%) globally outside of the EU

24 30 31
2021 2021
93% 66% 12% 21%
37%
1%
93 of 100
34 of 93
2020 100% 2020 100%
80% 81% 30%

73%
80 of 100 24 of 80
69% 60% 70% 68%
64%
2019 2019
61% 62% 53%
50% 54% 50%
51%
41%
79% 28% 38%
32%
79 of 100 18% 22 of 79 27% 28%
21%
12%
11% 5% 5% 4% 3% 4% 9% 4% 3%
0% 0%

FRANCE
Region: • Largest three-year increase in use of • Highest rate of using statutory audit
EUROPEAN UNION Integrated Reports (64%) firm for sustainable assurance (98%)
globally

52 56 49
reported 2021 36% 64% assured
2020 80% 20% Limited assurance 90% 95% 96%
2021 2021
100% 100%
98%
50 of 50
49 of 50
2020 100% 2020 100% 98%
92% 92%
100% 98%
98% 98%
88%
82% 90%
50 of 50 49 of 50
64% 74%
62%
66%
64%
2019 50%
60% 60% 2019 50%
100% 96%
48%
42%
50 of 50 48 of 50
12% 2%
0% 0% 2% 2% 2%

GERMANY
Region: • Third highest use of Annual Reports • Lowest rate of assurance (74%) among
EUROPEAN UNION (47%) globally EU jurisdictions

64 73 74
2021 2021
99% 68% 20% 6% 6%
74%
99 of 100
73 of 99
2020 100% 2020 100%
97%
94% 86%
81% 83% 70% 92% 93%
82% 80%
94 of 100 77% 66 of 94
73%
59% 66%
2019 50%
60% 2019 50%
42%
94% 44%
63%
32%
94 of 100 27% 59 of 94
5% 4% 5% 4% 3% 3% 1%
0% 9% 0% 1%

HONG KONG S.A.R.
Region: • Third highest use (88%) of standalone • Highest rate of reasonable assurance
ASIA-PACIFIC Sustainability Reports (34%) globally

13 21 29
2020 88% 8% 2% 2%
2021 2021
100% 84% 14%
52%
2%
50 of 50
26 of 50
2020 100% 2020 100%
98% 86%
35% 85% 86%
86%
74%
49 of 50 68% 17 of 49
66% 73%
64%
2019 2019
62% 61%
50% 56% 57% 50%
100% 26%
26% 31%
33%
50 of 50 13 of 50
22% 23%
19%
15% 10% 15%
16% 7%
10% 3% 5% 5%
0% 8% 0%

INDIA
Region: • Lowest use of SASB Standards (17%) • Second longest assurance lag (95 days),
ASIA-PACIFIC and second lowest use of TCFD (21%) globally
in Asia-Pacific

38 45 51
2021 2021
100% 41% 34% 23%
49%
2%
100 of 100
49 of 100
2020 100% 2020 100%
100% 40% 87%

76%
100 of 100 40 of 100 78%
64% 64%
60%
2019 2019
62%
50% 55% 55% 50%
98% 38%
47%
44%
39%
34%
29%
98 of 100 21% 37 of 98 22%
17% 27%
20%
4% 6% 13%
4%
9% 3% 3%
0% 7% 0% 7%

INDONESIA
Region: • Highest use of Annual Reports (70%), • Highest use of AA1000 assurance
ASIA-PACIFIC globally standards (44%), globally

9 13 16
reported 2021 30% 70% assured
2020 76% 22% 2%
2021 2021
100% 82% 10%
32%
4% 4%
50 of 50
16 of 50
2020 100% 2020 100%
100% 78%
88% 88%
26% 89%
82% 80%
50 of 50 78% 13 of 50
73%
69%
67%
56%
2019 50% 2019 50%
54%
44%
90% 20% 33%

38%
31%
45 of 50 18% 9 of 45
16%
10%
10%
0% 0% 8%

ITALY
Region: • Highest use of standalone Sustainability • Shortest lag (1 day) between statutory
EUROPEAN UNION Reports (64%) in the EU and sustainability assurance, globally

37 46 47
2020 62% 6% 30% 2%
2021 2021
100% 70% 8% 20%
94%
2%
50 of 50
47 of 50
2020 100% 98%
2020 100% 100%
100% 92% 92%
98% 90%
98% 97% 98%
94%
90%
49 of 50 76%
44 of 49
71%
66%
2019 50% 48% 2019 50%
98% 43%
73%
49 of 50 29% 29% 38 of 49
16%
3%
0% 0% 2%

JAPAN
Region: • Highest use of Integrated Reports (55%) • Second highest use of ISO GHG
ASIA-PACIFIC in Asia-Pacific assurance standards (48%) globally

51 57 73
2020 40% 5% 54% 1%
2021 2021
99% 53% 3% 43%
69%
1%
99 of 100
68 of 99
2020 100% 2020 100%
93%
99% 53%
87% 90%
93%
86%
84%
80% 82%
99 of 100 52 of 99 71%
76%
73%
62%
2019 2019
62% 61% 61%
50% 50% 48%
54%
44%
99% 38%
36%
47%
32%
99 of 100 25%
47 of 99 27%
6% 5% 5%
2% 4%
0% 0%

MEXICO
Region: • Third lowest rate (86%) of sustainability • One of two jurisdictions with a decreased
AMERICAS disclosure globally assurance rate (-2%)

19 21 20
2021 2021
86% 48% 18% 12% 22%
47%
43 of 50
20 of 43
2020 100% 2020 100%
95%
82% 87% 88%

88%
77%
88% 79% 85%
84% 51% 89%
95%
41 of 50 21 of 41
69%
67% 58%
2019 2019
63%
50% 50%
78% 41% 49%

39 of 50 19 of 39
18%
5% 11% 5% 5%
3%
0% 0%

SAUDI ARABIA
Region: • Largest three-year growth of sustainability • Lowest rate of sustainable assurance
OTHER EMEA reporting (24%) from 52% to 76% (13%) globally

2 3 7
2021 2021
76% 24% 24% 4% 48%
13%
38 of 50
5 of 38
2020 100% 2020 100%
100%
52% 12% 86%
26 of 50 3 of 26
2019 50% 47% 47% 2019 50%

54% 54% 54%
50% 42% 50% 50%
52% 42%
38%
8% 29% 33%
26 of 50 2 of 26
14%
11% 8%
15%
4%
0% 8% 0%

SINGAPORE
Region: • Second largest three-year decline (26%) • Second highest audit firm market share
ASIA-PACIFIC in use of standalone Sustainability (57%) in Asia-Pacific
Reports

13 16 23
2020 42% 50% 4% 4%
2021 2021
100% 60% 34% 2% 4%
38%
50 of 50
19 of 50
2020 100% 2020 100%
94% 94%
96% 25%
96%
98% 90%
87%
90%
88%
85%
81%
48 of 50 70% 12 of 48
73%
69%
2019 50% 2019 50%
96% 30% 21% 26%

31%
48 of 50 10 of 48
25%
19%
15% 9%
13% 13% 6% 4% 4%
2%
0% 0% 8% 8%

SOUTH AFRICA
Region: • Highest use of Integrated Reports (88%), • Largest decrease in the use of ISAE
OTHER EMEA globally 3000(R) (33%) globally

30 26 32
2020 94% 4%
2%
2021 2021
96% 14% 4% 82%
63%
48 of 50
30 of 48
2020 100% 98% 2020 100%
96% 54%
90%
92%
88%
83%
73%
48 of 50 77% 26 of 48
73%
64%
2019 2019
60% 52% 62%
50% 50% 50%
53%
100% 54%
46%
34% 34%
40%
50 of 50 27 of 50
15% 16%
15%
12% 7% 12%
10%
0% 8% 0%

SOUTH KOREA
Region: • 89% of companies that disclosed • Most companies with more than one
ASIA-PACIFIC sustainability information incorporated all assurance report
four reporting standards / frameworks

57 69 86
2021 2021
92% 58% 2% 32% 8%
100%
46 of 50
46 of 46
2020 100% 100% 100% 2020 100%
98% 98%
91%
92% 93%
96%
91%
96%
87%
91%
96%
98%
80%
46 of 50 45 of 46
74%
2019 50% 2019 50%

59%
42%
92% 93% 40%
30%
46 of 50 43 of 46 20% 25% 17%
24%
18% 16%
7% 14%
4% 3% 10%
0% 0% 1%

SPAIN
Region: • Second largest three-year growth of • Tied for second highest audit firm
EUROPEAN UNION Annual Reports (34%) from 8% to 42% assurance market share (98%) globally

44 44 49
2020 14% 36% 48% 2%
2021 2021
98% 38% 8% 50% 4%
94%
49 of 50
46 of 49
2020 100% 98% 98% 2020 100%
92% 94%
98% 94%
88%
92%
85% 86%
86% 89%
93%
83%
73%
49 of 50 42 of 49
63%
2019 50% 2019 50%
96% 85%
49%
45%
38%
48 of 50 41 of 48
20%
10% 10%
4% 11% 5% 7%
10% 5% 5% 2%
2%
0% 0% 2%

TURKEY
Region: • Second largest three-year growth of • Biggest assurance lag improvement
OTHER EMEA sustainability reporting (16%) from 72% (28 days) globally
to 88%

13 21 29
2021 2021
88% 32% 30% 10% 28%
52%
44 of 50
23 of 44
2020 100% 2020 100%
82% 82% 84%

80%
44%
41 of 50 76% 18 of 41 76%
59% 66%
64%
2019 50% 50%
61%
2019 50% 62%
67%
48%
72% 33%
47% 47%
43%
34%
36 of 50 12 of 36 31%
29% 21%
25%
20% 10%
6% 5% 3%
0% 0% 8% 8%

UNITED KINGDOM
Region: • Highest rate of net zero emissions • Largest three-year growth of assurance
OTHER EMEA reduction targets (79%) globally rates (27%) globally

58 71 88
2020 56% 34% 8% 2%
2021 2021
99% 60% 33% 6% 1%
82%
99 of 100
81 of 99
2020 100% 2020 100%
92%
98% 68%
90%
80%
82% 82%
98 of 100 76%
67 of 98 78%
65% 73% 66%
2019 2019
62%
50% 58% 50%
43%
99% 55%
48%
44% 43%
40% 39%
37%
27%
99 of 100 54 of 99 23%
24%
21%
5% 5% 7% 6% 5%
4% 4%
0% 0%

UNITED STATES
Region: • Highest rate of emissions reduction targets • Second lowest audit firm assurance
AMERICAS (97%) globally market share (15%) globally

81 99 98
2020 95% 2% 1% 2%
2021 2021
99% 96% 1% 2% 1%
82%
99 of 100
81 of 99
2020 100% 2020 100%
93% 91%
98% 76% 85%
82%
86%
81%
98 of 100 71% 79 of 98
73%
70%
64%
2019 50% 59% 60% 2019 50%
60%
50%
99% 71%
48% 40% 47%
34%
31%
99 of 100 70 of 99
21% 14%
14% 13% 7% 7% 6%
2% 10% 11%
2% 2% 8% 3%
0% 0%
GRI SASB SDG TCFD Multiple ISAE 3000 ISAE 3410 AICPA AA1000 ISO 14064 Other

METHODOLOGY
45
METHODOLOGY
This study reviewed the largest companies in each jurisdiction by market DATA COLLECTION METHODOLOGY
capitalization as of approximately March 21, 2021, for fiscal years 2019 and 2020,
and March 21, 2022, for fiscal year 2021. Company jurisdiction was based on the Reports were located on a company’s website in one of four places:
location of the company’s headquarters. The largest 50 companies were reviewed
in 16 jurisdictions for fiscal years 2019 and 2020, and 15 jurisdictions for fiscal
1. Dedicated sustainability web page for stakeholders
year 2021. The largest 100 companies were reviewed in the six largest economies 2. Sustainability web page under “About the Company” section
(denoted with an asterisk). The jurisdictions that make up the G20, Spain, Hong
Kong S.A.R., and Singapore were selected to ensure the jurisdictions had at least 3. Annual reports or downloads section of investor relations web page
50 listed companies to review. Jurisdictions with 100 companies reviewed were
selected based on the largest nominal GDP as of March 21, 2021. 4. Sustainability section of investor relations web page
If a report could not be located a company’s website, the company name
Europe, Middle East, was searched with the term “2020 sustainability report.” If a report was still
Americas and Africa (EMEA) Asia-Pacific not located, the company was search in the GRI Database of sustainability
• Argentina • France • Australia reports. For Hong Kong Stock Exchange (HKEx) listed companies, the exchange
• Brazil • Germany* • China’s mainland*
website was used to collect reports if a report could not be found on a
company’s website. This only impacted companies located in China’s mainland
• Canada • Italy • Hong Kong S.A.R.
and Hong Kong S.A.R.
• Mexico • Russia • India*
• United States • Saudi Arabia • Indonesia
of America* • South Africa • Japan* Emissions reduction targets 1. Sustainability Report Emissions reduction targets and transition plans
Spain Singapore and transition plans were were not always located together. All locations
• • 2. Annual Report
• Turkey • South Korea collected as of fiscal year were reviewed for each company to ensure all
2021. Emissions reduction 3. Integrated Report targets or transition plans were observed. For
• United Kingdom*
targets and transition plans 4. Company Website targets and transition plans that were located
Russia was excluded for fiscal year 2021 due to issues accessing public company documents and websites. were usually located in one 5. TCFD Website on a website, date of publication was used to
Excluding Russia from prior results would have resulted in 52% of companies receiving assurance in 2019 of six places: ensure targets and transition plans related to
(instead of 51%) and 60% audit firm market share in 2020 (instead of 61%). The impact on other reported 6. Other climate report fiscal year 2021 or earlier.
information was deemed immaterial.
46
METHODOLOGY
REPORT Reports were classified into three REPORTING Reporting standards were collected from the “About this Report” section.
CLASSIFICATION groups: sustainability reports, annual STANDARDS Both reporting standards and reporting frameworks were captured due
reports, and integrated reports. to inconsistent disclosure regarding their use as standards or frameworks.
Sustainability reports were identified Next, any standards or frameworks indexed in the appendix were collected.
as those published for the sole or main Finally, a text search for the Global Reporting Initiative (GRI), Sustainability
purpose of informing stakeholders of Accounting Standards Board (SASB), United Nations Sustainable
environmental, social, or governance Development Guidelines (SDG), and Taskforce on Climate-related Financial
activities and performance. Annual Disclosures (TCFD) was used to find additional references within the body
reports were identified as those of the report. Standards and frameworks must have been used to report
published for the main purpose of primary information to stakeholders.
informing stakeholders of financial
performance. Annual reports were
only collected if they included sustainability or ESG reporting. Integrated
reports were identified as those published pursuant to the <IR> ASSURANCE
framework issued by the International Integrated Reporting Council.
A company was determined to have obtained assurance if an assurance
For companies that issued more than one report, a hierarchy was used to report that covered ESG data was found within a report, on the
determine which report to collect. If an integrated report was published, company’s website, or in the CDP database. Verification statements
the company was counted as reporting in an integrated report, regardless were not counted, nor were references to assurance where a specific
of any other publications. If a company published both an ESG report and assurance report was not available. If a report included more than one
published this ESG information within an annual report, the company was assurance report, each report was reviewed separately.
counted as reporting in an annual report.
47
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IFAC State of Play Sustainability Assurance Disclosure

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THE STATE OF PLAY:

SUSTAINABILITY DISCLOSURE & ASSURANCE

91% 92% 95% 83% 82% 80%

* Including national assurance standards—such as the

Link to 2020 State of Play report

Reporting: GHG Other Environmental Social Governance*

Assurance: ASSURANCE ASSURANCE ASSURANCE ASSURANCE

89% 96% 43% 53%

STANDARDS & FRAMEWORKS.

1,283 of 1,350 companies reported ESG information

REPORTED ON ESG 2020 51% 20% 21% 8%

2021 50% 24% 21% 5%

Over the three year period, fewer companies

Use of Integrated Reports surged in France

Globally, the number of reporting companies

In Saudi Arabia, reporting on ESG increased

FRAMEWORKS 69% 72% 74%

86% of companies now use / reference

The terms "carbon neutral" and "net zero" are often

Click to view 2020 2021

2021 is based on 1,350 companies from 21 jurisdictions.

However, companies in G7 jurisdictions 50%

Political and societal mandates, and other 49%

an emissions target also provide information 87% OF COMPANIES

However, companies may state their goal is

WHO PROVIDES ASSURANCE. ASSURANCE STANDARDS.

68% 72% 70%

61% assurance reports from 741 companies)

in 2019 in 2020 in 2021

64% OF THE COMPANIES THAT

Largest Audit Firm Market Share (2019-2021):

The number of assurance engagements performed

Total population 80% 10% 7% 2%

• Higher rates of assurance from other service

ASSURANCE RATE BY REPORT TYPE

52% 57% 65%

Information disclosed in accordance with 4% 9% 7% 3% 3% 3%

• GHG Protocol 145 assurance reports

70% of 516 70% 2021 AVERAGE

ESG assurance reports reviewed in

Asia-Pacific saw the most improvement –

The assurance lag worsened in the Americas –

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

2019 50% 2019 50% 56%

* A company may have more than one assurance report 24

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

* A company may have more than one assurance report 25

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

* A company may have more than one assurance report 26

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

2019 50% 55%

94% 45% 33%

* A company may have more than one assurance report 27

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

80% 81% 30%

* A company may have more than one assurance report 28

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

* A company may have more than one assurance report 29

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

* A company may have more than one assurance report 30

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

* A company may have more than one assurance report 31