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Since 2023, sustainability reporting policies have leaned further toward voluntary frameworks, which now account for 58% of policies set around the world – as revealed in the 2024 edition of the Carrots & Sticks (C&S) report.
The research finds that GRI is referenced in 18% of ESG regulations globally, while there is an increase in disclosure policies related to SDG 8 (decent work) and SDG 16 (peace and justice). The finance, manufacturing and technical sectors are the most targeted industries – each covering 10-20% of policies.
The 2024 report sees 214 new policies added, meaning the Carrots & Sticks database now tracks 2,677 ESG and sustainability policies from 132 countries. The latest data indicates a continued trend favoring voluntary (‘carrots’) over mandatory measures (‘sticks’). The GRI Standards are referenced in 477 policies, with six mandating compliance and 127 encouraging voluntary use, especially in Asia-Pacific, Europe and Latin America.
The C&S publication and online database have been developed by GRI, the Stellenbosch University Business School, King’s College London and the University of Edinburgh. Since its launch in 2006, C&S has aimed to provide a reliable data resource for businesses, policymakers, researchers and stakeholders, with insights to support better decision-making.
The latest Carrots & Sticks findings highlight an increasing focus by governments and regulators towards legislative measures that encourage companies to address global sustainability challenges, alongside recognition of the role of transparency, including for supply chain impacts, in driving effective decisions by all stakeholders. It is encouraging to see a continued rise in references to the GRI Standards in global policies. However, to drive meaningful progress, a transition to robust mandatory policies is essential, complementing the predominantly voluntary disclosure landscape we see today.
Peter Paul van de Wijs, Chief Policy Officer at GRIThe 2024 Carrots & Sticks report captures an exciting momentum in global ESG policy, marking both growth and depth in transparency initiatives. This year’s enhanced methodologies, including GICS (Global Industry Classification Standard) and advanced NLP (natural language processing) techniques, reveal more than just data – they illustrate a global commitment to sustainable governance.
Adam Chalmers, Senior Lecturer in Politics and International Relations, University of Edinburgh