The research shows that GRI Standards are referenced in 477 policies globally, with six mandates and 127 encouraging voluntary use, especially in regions like Asia-Pacific, Europe, and Latin America. The report tracks a total of 2,677 ESG policies from 132 countries, marking the inclusion of 214 new policies in 2024 alone.
In-depth findings from the report underline the continued prevalence of voluntary (or ‘carrot’) policies over mandatory (or ‘stick’) measures. This trend reflects an international push for greater transparency in ESG reporting, particularly within industries like finance, manufacturing, and technology, each of which accounts for 10-20% of global ESG policies. As ESG reporting grows, so does the focus on supply chain transparency and data standardization, both of which are critical to achieving global sustainability goals.
Peter Paul van de Wijs, Chief Policy Officer at GRI, commented on the report’s findings, noting that while the rise in references to the GRI Standards is promising, there is a critical need for a shift towards more robust mandatory policies. He emphasized that voluntary disclosure alone is insufficient to drive the meaningful progress needed in addressing global sustainability challenges.
The 2024 Carrots & Sticks report, developed by GRI, Stellenbosch University Business School, King’s College London, and the University of Edinburgh, continues to provide invaluable insights to businesses, policymakers, and researchers. This year’s findings reflect a growing commitment to sustainable governance and offer enhanced methodologies, including GICS (Global Industry Classification Standard) and advanced natural language processing (NLP) techniques, for more precise policy tracking and analysis.
As the global sustainability landscape continues to evolve, the C&S report remains a vital resource for understanding shifts in reporting practices and their impact on global governance and corporate accountability.
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