IFAC: 93% of firms use a mix of ESG standards, thwarting uniformity efforts: IFAC

04 March 2024

The spotlight on confusion from a jumble of ESG frameworks comes just days before a vote on an SEC rule aimed at ensuring uniformity in climate disclosure.

• The share of U.S. companies that use more than one standard for disclosing sustainability performance has surged to 93% from 60% in 2019, the International Federation of Accountants said, noting that the hodge-podge of frameworks may confuse capital markets stakeholders.
• The lack of uniformity “leaves investors and lenders in a bind when it comes to having consistent, comparable and high-quality sustainability information at hand,” David Madon, IFAC’s director of sustainability, policy and regulatory affairs, said in a statement.
• The largest global companies report on sustainability with more depth and breadth than in prior years, and 69% obtain assurance on at least some of their disclosures compared with 51% in 2019, IFAC said. Still, “a global best practice has yet to emerge,” it said, describing a report co-conducted by the American Institute of CPAs and Chartered Institute of Management Accountants....

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