Business at OECD – The Risks of Divergence Between Global ESG Reporting Standards

The main theme of the report concerns the complexities and financial burdens faced by companies in a fragmented global ESG reporting landscape.

Key findings include the complexity and cost of compliance being major issues for companies, with most expecting increased ESG reporting costs. Companies face challenges in disclosing data on climate change, biodiversity, supply chain workforce, and circular economy issues. Institutional investors play a crucial role in shaping disclosure practices. The report offers recommendations to governments and the OECD for improvement, including reducing reporting metrics and harmonizing reporting timelines.