• ‘Fragmented landscape’ becomes a bit more structured with shift toward standardization and integration

• Three-quarters of large global companies obtained assurance on at least some of their sustainability disclosures

• The percentage of companies that used audit firms to perform assurance of sustainability information rose to 59% globally

The global sustainability reporting ecosystem is becoming less fragmented as more of the world’s largest companies begin to adopt or form plans to use the International Sustainability Standards Board (ISSB) standards and European Sustainability Reporting Standards (ESRSs), an updated report from the International Federation of Accountants (IFAC), American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA) shows.

The report, The State of Play: Sustainability Disclosure and Assurance (Six-Year Trends and Analysis, 2019-2024), is the sixth annual benchmark of sustainability reporting and assurance practices of global companies in G20 jurisdictions. Because the newest data in the report is from 2024, due to the typical lag for sustainability information, the results likely understate the extent of movement toward more uniform standards.

“(T)he global reporting ecosystem is transitioning from a fragmented landscape toward one that is increasingly structured, standardized, and integrated,” the report summarizes. “However, this transition is not yet complete and may continue to be challenged by shifting geopolitical and regulatory sentiment within some of the world’s largest economies.”

While global companies still use a patchwork of sustainability-related standards, the survey found progress in a number of areas:

• A third of companies with sustainability information disclosures in 2024 referenced the use or future use of ISSB standards, compared to only 16 percent that did so the previous year. Turkey adopted the ISSB Standards beginning for fiscal year 2024 and several additional jurisdictions will implement ISSB requirements in reports that will be published in 2026.
• Similarly, 20 percent of companies that disclosed sustainability information in 2024 said they used or plan to use ESRS, which suggests their implementation in the European Union may be having a cross-border impact.
• Use of other standards and frameworks – the Task Force on Climate-Related Financial Disclosures (TCFD) framework, Global Reporting Initiative (GRI) standards and U.N. Sustainability Development Goals (SDG) – all fell by single digits between 2023 and 2024.

"Around the world, we are seeing growing alignment behind high-quality sustainability reporting and assurance practices,” said Lee White, IFAC Chief Executive Officer. “This progress matters because trusted, decision-useful information supports better decisions, stronger organizations, and more efficient capital allocation. We expect this momentum to continue as stakeholders increasingly recognize the value of reliable sustainability-related information.”

Among other highlights of the updated survey:

• Ninety-seven percent of global companies had some form of disclosure of sustainability information in 2024, a percentage drop from the previous year.
• Seventy-five percent of companies in the survey obtained assurance on their sustainability disclosures in 2024, up slightly from 73 percent the previous year. Most of the assurance performed was at a limited assurance level.
• Audit firms continue to lead in providing assurance on sustainability disclosures by large global companies (59 percent of engagements, up four percentage points from last year), with broad variations country to country.

“The growing use of audit firms for sustainability assurance is a good sign for capital markets and investors,” said Susan Coffey, CPA, CGMA, the CEO of public accounting for AICPA and CIMA. “Auditors have earned their reputation for trust and expertise, backed by strong professional certification programs and robust rules on audit, independence and professional integrity.”

Seventy-six percent of companies reported sustainability information with financial disclosures in 2024 annual or integrated reports, up two percentage points from the previous year. Organizations that obtain assurance over sustainability information within their annual or integrated reports overwhelmingly use their statutory auditor to provide assurance over those disclosures.

Mexico, Singapore and Turkey all had large increases in the percentage of audit firms performing assurance on sustainability information in 2024. The United States, meanwhile, had just under a third (32 percent) of sustainability-related assurance engagements performed by audit firms, up four percentage points from the previous year.

About the Study

IFAC, AICPA and CIMA partnered to understand sustainability reporting and assurance practices on a global basis by capturing reports containing environmental, social and governance (ESG) information in 22 jurisdictions. Some 1,400 companies were reviewed—one hundred from each of the largest six economies, with 50 companies reviewed in the remaining 16 jurisdictions. The current report includes data from 2019-2024.

About the Association of International Certified Professional Accountants, AICPA, and CIMA

The Association of International Certified Professional Accountants (the Association) advances the reputation, employability and quality of CPAs, CGMA designation holders and accounting and financial professionals globally. Founded in 2017 by the AICPA and CIMA, it represents 574,000 AICPA and CIMA members, students, and registrants in more than 150 countries and territories, advocating for the public interest and business sustainability on current and emerging issues.

About the International Federation of Accountants

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together with the Forum of Firms and other key stakeholders to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

View the newsletter version.

We held our second Board meeting of 2026 from June 9-11, in Washington, D.C. Thank you to the International Monetary Fund (IMF) for welcoming us back to your headquarters for our June CAG and Board meetings and for hosting us at an excellent event specifically related to our work, From Standards to Fiscal Policy: Integrating IPSAS, Fiscal Statistics, and Balance Sheet Analysis to Ensure Data Integrity.

This edition of The State of Play: Sustainability Disclosure and Assurance marks six years of benchmarking data and corresponding analysis. Our findings suggest the global sustainability reporting ecosystem is becoming less fragmented as more companies begin adopting, or preparing to adopt, the International Sustainability Standards Board (ISSB) Standards and European Sustainability Reporting Standards (ESRSs).

The International Auditing and Assurance Standards Board (IAASB) has released a new Frequently Asked Questions (FAQ) publication to support implementation of the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.

The FAQs focus on the application of materiality in sustainability assurance engagements and are intended to promote consistent understanding and effective application of the concept under ISSA 5000.

The document explains how both reporting entities and assurance practitioners apply materiality in the context of sustainability information, including:

• Understanding the information needs of intended users of sustainability information;
• Addressing qualitative and quantitative disclosures;
• Addressing double materiality considerations, when required; and
• Considering how materiality is applied throughout the engagement to support decision-useful sustainability reporting.

The FAQs also provide explanations and illustrative examples to help stakeholders better understand the application of the concept of materiality under ISSA 5000. The new material brings together other related matters highlighted in other IAASB support materials by providing appropriate links.

The document is available on the IAASB website here: www.iaasb.org/ISSA5000

This publication complements IAASB’s existing resources and is intended to support practitioners, preparers, regulators, and other stakeholders as they implement, or prepare for the implementation of, ISSA 5000. It does not amend, override, or supersede the requirements of ISSA 5000.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.