U.S. Companies Strengthen Sustainability Reporting Amid ESG Shift

U.S. companies are advancing sustainability transparency, with 100 percent of surveyed businesses now reporting ESG metrics, according to KPMG’s 2024 Survey of Sustainability Reporting. The study, which examined 5,800 companies across 58 countries, highlights significant progress in corporate sustainability practices. Key findings indicate that 95 percent of the world’s largest companies (G250) have set carbon targets,

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while 56 percent employ sustainability leaders. Additionally, 30 percent of these firms link sustainability performance to executive compensation, and 69 percent secure third-party assurance for their reports. U.S. businesses are actively preparing for the European Union’s Corporate Sustainability Reporting Directive (CSRD), with increasing adoption of double materiality assessments and mandatory assurance.

As sustainability reporting becomes a core aspect of corporate governance, businesses are integrating environmental, social, and financial materiality into their strategies. KPMG leaders emphasize the growing presence of sustainability officers in boardrooms and the rising importance of non-financial data for investors. With CSRD requirements taking effect in 2025, American companies are expected to further align their reporting with international standards. The survey also reveals a stronger connection between sustainability and executive decision-making, with 40 percent of G250 firms tying sustainability goals to compensation. KPMG anticipates continued progress as companies refine their sustainability programs to meet regulatory and stakeholder expectations.

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