IFAC Beyond G20 Sustainability Reporting Assurance

THE STATE OF PLAY
BEYOND THE G20

SUSTAINABILITY DISCLOSURE AND
ASSURANCE IN 20 MORE JURISDICTIONS
2019-2021 TRENDS & ANALYSIS
SEPTEMBER 2023
FOREWORD
This report expands IFAC and AICPA & CIMA’s benchmarking of The wide variety and mix of frameworks and standards used
global practice in sustainability disclosure and assurance to KEY HIGHLIGHTS to disclose sustainability information impairs comparability
jurisdictions beyond the G20, which were the focus of previous • Including sustainability disclosures with financial disclosures. and thereby the usefulness of non-financial information. A
reports in the State of Play series. The goal is to identify trends in the Sustainability information was more likely to be included with financial global baseline of disclosure requirements—as envisioned
Global South by focusing on jurisdictions in Latin America, Africa, disclosures—in annual reports or integrated reports—than stand- by the International Sustainability Standards Board (ISSB)
the Middle East, and Southeast Asia, as well as smaller members, alone sustainability reports. In three jurisdictions—Chile, Kenya, and —will help facilitate comparable disclosures that are decision-
by GDP, of the European Union and non-EU European jurisdictions. Malaysia—a majority of companies used integrated reports to disclose useful for providers of capital, as well as broader stakeholders.
The results show that both sustainability disclosure and assurance sustainability information. In nine jurisdictions—Belgium, Ireland, The goal of sustainability reporting should be to deliver
are improving in these new jurisdictions. Disclosure rates grew from Morocco, New Zealand, Nigeria, Norway, the Philippines, Sweden, and high-quality information that is on par with financial reporting.
84% in 2019 to 89% in 2021, and assurance rates grew from 37% Thailand—a majority of companies used annual reports. In only three This should include using public interest assurance standards
jurisdictions—Colombia, Israel, and Peru—did 50% of companies or designed specifically for sustainability information, such as
in 2019 to 48% in 2021.
more disclose their ESG information in stand-alone sustainability reports. the International Auditing and Assurance Standards Board’s
Reporting by companies in these new jurisdictions lagged those proposed International Standard on Sustainability Assurance
in G20 jurisdictions by 6%. Assurance rates were even further • Sustainability disclosure is an alphabet soup of standards and
5000, which requires independence between the assurance
behind, trailing by 16%. However, the new jurisdictions were more frameworks. Most companies reviewed in this report (84%) used a
services provider and the client. Finally, regulators should
likely to obtain assurance from audit firms (also referred to as "firms") mix of standards and frameworks to disclose sustainability information, commit to setting requirements for obtaining a reasonable
and more likely to receive limited assurance in 2021. including more than half of the companies in 18 of the 20 jurisdictions level of assurance over company sustainability disclosures. This
reviewed. Using the Sustainable Development Goals was most common is a necessary final step that will bring reporting and assurance
at 84%, with GRI Standards close behind at 79%. About half of the together to support market and societal needs.
METHODOLOGY: Jurisdictions in this report companies used the TCFD Framework and a third used the SASB
Latin America: Europe: Middle East Asia-Pacific: Standards—with references to both increasing by approximately 25%
Chile Belgium & Africa: Malaysia between 2019 and 2021.
Colombia Ireland Egypt New Zealand • More assurance over less information. While assurance rates have Kevin Dancey
Peru Norway Israel Philippines risen from 37% to 48%, engagements are covering a narrower set of Chief Executive
Poland Kenya Thailand topics. Broad assurance—that is, assurance covering greenhouse gas Officer, IFAC
Romania Morocco metrics, other environmental, social, and governance topics—has declined
Sweden Nigeria from 74% in 2019 to 64% of engagements in 2021. Governance topics
Switzerland UAE have led this decline, dropping from 76% in 2019 to 66% in 2021.
2
MAPPING REPORTING AND ASSURANCE PRACTICES
KEY FINDINGS: 2019 | 2020 | 2021
This study benchmarks 2019-2021 market practice for
the reporting and assurance of environmental, social, 84% 87% 89% 80% 83% 85%
and governance (ESG or sustainability) information,
reported some ESG information of assurance was limited
in major jurisdictions beyond the G20. Five hundred
stock exchange listed companies were reviewed for
37% 44% 48% 81%

all three years (see Methodology Section). Twenty
new jurisdictions are included from Asia-Pacific (4), 81% 81%
Europe (7), Middle East & Africa (6), and Americas (3)
(see page 4). obtained some level of assurance of firms applied ISAE 3000 (Revised)
Our three-year cumulative analysis indicates that while

the frequency of reporting ESG information is very
high and the incidence of assurance is on an upward 64% 64% 62% 35% 34% 38%
trend, there continues to be a meaningful difference
assurance engagements conducted by firms of other service providers applied ISAE 3000
between reporting and assurance rates.
(Revised)
3
MAPPING GLOBAL REPORTING AND ASSURANCE PRACTICES – 2021
NORWAY SWEDEN
100 72.0 84.0 100 100 96.0
BELGIUM POLAND
92.0 57.0 85.0 100 28.0 43.0
ROMANIA
IRELAND 88.0 18.0 75.0
76.0 42.0 33.0
ISRAEL
SWITZERLAND
60.0 60.0 33.0
100 72.0 59.0
EGYPT
MOROCCO 44.0 36.0 0 THAILAND
88.0 0 N/A 100 68.0 28.0
PHILIPPINES
UAE 100 32.0 13.0
68.0 29.0 80.0
COLOMBIA MALAYSIA
Rate of ESG NIGERIA
Reporting 92.0 65.0 89.0 KENYA
92.0 39.0 78.0 100 48.0 46.0
92.0 4.0 100
0% 100% PERU
Rate of ESG 96.0 42.0 23.0
Assurance
NEW ZEALAND
CHILE
0% 100% 100 52.0 53.0
100 76.0 78.0
Assurance Provided
by Audit Firms
0% 100% 4
SCOPE OF REPORTING 2019 2020 2021
AND ASSURANCE
GHG Other Environmental Social Governance*
REPORTING REPORTING REPORTING REPORTING
86% 92% 96% 98% 98% 99% 100% 100% 100% 99% 99% 99%
ASSURANCE ASSURANCE ASSURANCE ASSURANCE
95% 95% 95% 86% 83% 80% 87% 84% 80% 76% 73% 66%
Almost all companies reviewed reported REPORTING ASSURANCE

* Governance does not include
remuneration (or other)
some information in these four categories, information that is statutorily
but assurance lagged meaningfully—except required to be reported and
assured in some jurisdictions.
for GHG information. The level of assurance
over social and governance disclosures was
86% 92% 96% 74% 71% 64%
All Topics
significantly higher than in our G20 report.
5
REPORTING
6
SUMMARY CHANGES: REPORTING
METHOD OF REPORTING.
The use of stand-alone sustainability reports has declined globally over the 2019-2021 reporting periods, however over half
of companies reviewed in Colombia, Peru, and Israel do not include their ESG information in annual or integrated reports.
Meaningful integrated reporting growth was seen in Chile, Kenya, Peru, the Philippines, and UAE between 2019 and 2021.
STANDARDS & FRAMEWORKS.

The use of or reference to the Sustainability Accounting Standards Board (SASB) Standards and the Task Force
on Climate-related Financial Disclosure (TCFD) Framework increased significantly.
SASB increase of TCFD increase of
447 of 500 companies reported ESG information

in 2021 (compared to 433 of 500 in 2020). 54% 33%
over 2020 over 2020
increasing from
The use of or reference to Global Reporting Initiative (GRI)
Standards and UN Sustainable Development Goals (SDGs)
remained high (comparing 2020 to 2021) among the 74% to
79% (GRI)
companies that reported on ESG.
increasing from
78% to
84% (SDGs)
7
REPORTING BY
JURISDICTION 2021 19% 45% 25% 11%
2020 17% 47% 23% 13%
2019 24% 43% 17% 16%

Sustainability reporting has increased
from 84% in 2019 to 89% in 2021
Sustainability Report Annual Report Integrated Report No Report
Nine jurisdictions—including all Asia-Pacific 100% LATAM EUROPE MIDDLE EAST & AFRICA ASIA-PACIFIC
jurisdictions—saw 100% rates of sustainability

reporting, while companies in Egypt, Ireland,
Israel, and the UAE lag other jurisdictions.
• The use of integrated reports has increased by

8% from 17% in 2019 to 25% in 2021.
50%
• The use of standalone sustainability reports
has declined by 5% from 24% in 2019 to
19% in 2021.
0%
447 of 500 companies reported ESG information CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
in 2021, compared to 419 of 500 in 2019.
COLOMBIA BELGIUM NORWAY ROMANIA SWITZERLAND ISRAEL MOROCCO UAE NEW ZEALAND THAILAND
8
USE OF STANDARDS
AND FRAMEWORKS
Multiple standards – Companies that used more than one standard/framework for their 2021 ESG reporting
100% LATAM EUROPE MIDDLE EAST & AFRICA ASIA-PACIFIC
The use of multiple standards and

84% AVERAGE RATE OF REPORTING
frameworks increased to 84% in 2021 84%
from 66% in 2019. 76%
66%
• Latin America and Asia-Pacific have the highest

usage rate (93%) of multiple standards. 50%
• The Middle East & Africa have the lowest usage

rate (72%) of multiple standards.
0%
2019 2020 2021 CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
The percentage of ESG reporting standards and frameworks

is calculated as the number of reports that disclose the use
of a specific standard or framework vs. the total number of
reports that include ESG information (374 of 447).
9
USE OF STANDARDS SASB Standards – Jurisdictional reference or use of the SASB Standards during 2021
AND FRAMEWORKS 100% LATAM EUROPE MIDDLE EAST & AFRICA ASIA-PACIFIC
The use of SASB Standards has grown

50%
significantly from 9% in 2019 to 33%
in 2021. 33% 33% AVERAGE RATE OF REPORTING
22%
9%
• Latin America had the highest usage (51%).
0%
• The Middle East & Africa had the lowest 2019 2020 2021 CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
usage (16%). COLOMBIA BELGIUM NORWAY ROMANIA SWITZERLAND ISRAEL MOROCCO UAE NEW ZEALAND THAILAND
TCFD Framework – Jurisdictional reference or use of the TCFD Framework during 2021
The use of the TCFD Framework has

grown significantly from 19% in 2019 to
47% in 2021. 50% 47% AVERAGE RATE OF REPORTING
47%
32%
• Asia-Pacific had the highest usage (66%).
19%
• The Middle East & Africa had the lowest
usage (11%). 0%
10
USE OF STANDARDS GRI Standards – Jurisdictional reference or use of the GRI Standards during 2021
AND FRAMEWORKS 100% LATAM EUROPE MIDDLE EAST & AFRICA ASIA-PACIFIC
79% 79% AVERAGE RATE OF REPORTING

74%
69%
The use of GRI standards has grown
50%
significantly from 69% in 2019 to 79%
in 2021.
• Latin America had the highest usage (93%).

0%
• The Middle East & Africa had the lowest 2019 2020 2021 CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
usage (59%). COLOMBIA BELGIUM NORWAY ROMANIA SWITZERLAND ISRAEL MOROCCO UAE NEW ZEALAND THAILAND
SDG Goals – Jurisdictional reference or use of the SDG Goals during 2021
84% AVERAGE RATE OF REPORTING

The SDG goals are the most common 78%
84%
sustainability reporting reference (84%). 69%
50%
• Latin America had the highest (93%).

• Europe and the Middle East & Africa had the
lowest usage (80%).
0%
11
ASSURANCE
12
SUMMARY CHANGES: ASSURANCE
ASSURED ESG INFORMATION.
The percentage of companies that obtained assurance on
some of their ESG reporting increased from:
37% to
44% to
48%
in 2019 in 2020 in 2021
The jurisdictions with the largest 3-year increases are Chile, Ireland, Malaysia, Norway, Peru, Thailand, and the UAE.
WHO PROVIDES ASSURANCE. ASSURANCE STANDARDS.

The International Auditing and Assurance Standards Board’s
Of engagements (i.e., 147 of 239
62%
(IAASB) International Standard on Assurance Engagements
assurance reports from 215 companies) (ISAE) 3000 (Revised) is the most widely used standard for
were conducted by audit firms in 2021.
ESG assurance engagements.
68% 68% 72%

64% assurance reports from 190 companies)

were conducted by audit firms in 2020.
to to
in 2019 in 2020 in 2021

64%
81% of audit firms* used ISAE 3000 (Revised), while
assurance reports from 157 companies) non-IAASB standards were most commonly used
were conducted by audit firms in 2019. by the other service providers (OSPs) (i.e., only 38%
used ISAE 3000 (Revised)) during 2021).
*An additional 12% of firms used national professional accountancy assurance standards, including assurance standards set by FAR in Sweden and attestation
standards set by the College of Accountants of Chile in Chile.
13
RATE OF ASSURANCE
BY JURISDICTION
2019 2020 2021
48% of the companies that disclosed 100% LATAM EUROPE MIDDLE EAST & AFRICA ASIA-PACIFIC
ESG data obtained assurance in 2021—

up from 37% in 2019.
• Latin America led assurance growth, rising from

43% in 2019 to 61% in 2021.
61% AVG.
• The Middle East & Africa lagged with assurance 57% AVG.
rates only rising from 19% in 2019 to 25% 50% 50% AVG.
in 2021.
• Nine jurisdictions have assurance rates above

the 48% average for all 20 jurisdictions. 25% AVG.
– Sweden (100%), Chile (76%), Norway
(72%), Switzerland (72%), Thailand (68%),
Colombia (65%), Israel (60%), Belgium
(57%), New Zealand (52%) 0%
The percentage of assurance is based on the number of companies CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
that obtained assurance over reported ESG information (215 in 2021)
vs. the total number of companies that reported ESG information
(447 in 2021). If a company obtained more than one assurance report
(e.g., there were multiple metrics or information individually verified),
that company is only counted once. Reviews, verification statements, * No assurance engagements were performed in Morocco.
and other similar items were not counted as assurance reports.
14
TYPE OF AUDIT On average – 62% of assurance in 2021 was provided by audit firms
FIRM PROVIDING
2021 62% 38%
ASSURANCE 2020 64% 36%
Audit firm market share has remained 2019 64% 36%
relatively steady (declining 2%) over

Audit Firm Other Service Provider
2019 to 2021.
• Europe had the highest rate of audit firm

assurance (74%).
74% AVG.
• Asia & the Pacific had the highest rate of Other 69% AVG.
Service Provider assurance (63%).
52% AVG.
• The frequency of audit firm assurance 50%
engagements was consistent over 2019 - 2021,
37% AVG.
however we note that:
– All assurance in Kenya was performed by
audit firms.
– All assurance in Egypt was performed by OSPs. 0%
– Audit firm assurance increased in Romania
CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
from 0% in 2019 to 75% in 2020.
Assurance provider is calculated as the number of assurance reports
signed by firm type vs. the total number of assurance reports. * No assurance engagements were performed in Morocco.
15
LOCATION AND LEVEL
OF ASSURANCE LEVEL OF ASSURANCE - 2021 Limited Reasonable Moderate ND
Total 85% 5% 6% 4%
85% of assurance is limited.

• Nearly all audit firm assurance (97%) was
Audit firms 97% 1% 2%
performed at a limited level.
• Other Service Providers perform most reasonable

and all moderate assurance. Other service providers 66% 10% 16% 8%
0% 50% 100%
Assurance rates are increasing across ASSURANCE RATE BY REPORT TYPE

all report types. 2019 2020 2021
• Companies that include their sustainability

information in integrated reports are more
Sustainability Report 33% 36% 42%
likely to obtain assurance (60%).
Annual Report 33% 41% 44%
Integrated Report 55% 56% 60%
16
STATUTORY
AUDITORS VS. 2020 2021
ESG ASSURANCE 100% LATAM EUROPE MIDDLE EAST & AFRICA ASIA-PACIFIC
PROVIDERS
82% AVG.
Companies that use an audit firm for

sustainability assurance are more likely to
use their statutory audit firm (61%) than a
different audit firm (39%). 50% 50% AVG.
However, regions vary widely: 35% AVG.
• European companies use statutory audit firms 28% AVG.

in 82% of audit firm sustainability assurance
engagements.
• Latin American companies use statutory

audit firms in 28% of audit firm sustainability 0%
assurance engagements.
CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
Statutory audit firm data is presented in The State of Play * No assurance engagements were performed in Morocco and no assurance was performance by audit firms in Egypt.
series of reports for 2020 and 2021. 2020 and 2021 data
All assurance in Kenya during 2020 and 2021, and Thailand during 2021 was performed by a non-statutory audit firm.
is included here for comparability.
17
DAYS BETWEEN
STATUTORY AUDIT 2019 2020 2021
AND ESG ASSURANCE 400 LATAM EUROPE MIDDLE EAST & AFRICA ASIA-PACIFIC
350
The gap between when statutory audit
reports are issued vs. sustainability 300
assurance reports declined from 48
days (2019) to 42 days (2021). However, 250
there are significant differences between

200
regions and jurisdictions.
150
• European companies had the shortest lag of
21 days, on average. 109 AVG.
100
• The Middle East and Africa had the longest lag 59 AVG.
of 109 days. 50
37 AVG.
21 AVG.
• The day lag in Belgium, Ireland, Norway, and 0
Sweden was consistent with that of France,
Germany, Italy, and Spain in the G20 State of Play. CHILE PERU IRELAND POLAND SWEDEN EGYPT KENYA NIGERIA MALAYSIA PHILIPPINES
Some jurisdictions may have different deadline requirements for
statutory reporting vs. voluntary disclosures, which can impact * No assurance engagements were performed in Morocco and no day gap information was available for Romania or UAE in 2019.
the time between the date of the statutory audit report and
ESG assurance report(s).
18
JURISDICTION PROFILES
19
CHILE Region:
LATAM
SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

Report types Number of assurance reports
14 23 23
reported 2021 20% 80% assured
some ESG some ESG Firm assurance 79% 83% 78%
information information
2020 4% 48% 48% Limited assurance 100% 100% 96%
2021 2021
2019 Use statutory Firm 36% 26% 22%
100% 28% 32% 40%
76%
25 of 25
Sustainability Annual Integrated No Report
19 of 25
Assurance lag (days) 75 76 54
Reporting standards / frameworks Assurance standards
2020 100% 2020 100%
96% 100% 100%
100% 84%
92%
88% 88%
76%
25 of 25 72% 19 of 25
76%
71%
68% 60% 61%
2019 50% 2019 50%

61%
100% 44%
48% 26%
32%
25 of 25 12 of 25 17%
21% 22%
17%
7% 14%
4% 12% 4% 4%
0% 0% 0%
GRI SASB SDG TCFD Multiple ISAE 3000 ISAE 3410 AA1000 ISO 14064 Other
* A company may have more than one assurance report 20

COLOMBIA Region:
LATAM

13 14 18
reported 2021 56% 4% 32% 8% assured
2020 48% 12% 32% 8% Limited assurance 92% 86% 83%
2021 2021
92% 52% 16% 24% 8%
65%
23 of 25
15 of 23
2020 100% 2020 100%
100% 100% 100%
92% 61% 92%

86%
83%
83% 83% 83%
23 of 25 78% 78% 14 of 23
65% 74%
57%
2019 50% 2019 50%
92% 35%
57%
23 of 25 13 of 23 17% 17%
22%
15% 14% 8% 7% 7%
4% 4%
0% 0% 0% 0% 0% 0% 0%
21
PERU Region:
LATAM

5 8 13
2021 2021
96% 64% 16% 8% 12%
42%
24 of 25
10 of 24
2020 100% 2020 100%
92% 83%
79% 79%
30%
82% 83% 83%
24 of 25 78% 7 of 23 75%
69%
2019 50% 2019 50%

69%
50%
88% 45%
33% 23%
25% 23%
24 of 25 5 of 22
20% 20%
17% 8%
5% 13% 13%
9%
0% 9% 0% 0% 0%

EGYPT Region:
MIDDLE EAST & AFRICA

3 5 4
2021 2021
2019 Use statutory Firm N/A N/A N/A
44% 32% 8% 60%
36%
11 of 25
5 of 11
2020 100% 2020 100% 100%
100% 100%
44% 91% 82% 82% 45%

82%
11 of 25 5 of 11
70%
2019 50%
60%
2019 50%
55% 45%
40% 40%
36%
30%
10 of 25 18% 3 of 10
18% 18%
0% 0% 0% 0% 0% 0% 0% 0%

ISRAEL Region:

10 11 12
reported 2021 52% 8% 40% assured
2021 2021
60% 40% 56%
60%
4%
15 of 25
9 of 15
2020 100% 2020 100%
93%
56% 91%
93%
91%
93%
80% 91%
93%
87%
57%
14 of 25 8 of 14
60%
2019 50% 2019 50%
50%
44% 36%
64% 36%
33% 40%
36%
25% 30%
25%
11 of 25 20% 7 of 11 27%
17%
21% 20%
9% 10% 9%
0% 0% 0%

KENYA Region:

1 1 1
2020 8% 80% 8%
4%
Limited assurance 100% 100% 100%
2021 2021
92% 28% 56% 12%
4%
4%
23 of 25
1 of 23
2020 100% 2020 100% 100% 100%
100% 100% 100%
92% 87%
4%
23 of 25 70% 1 of 23
74%
2019 2019
64%
50% 50%
52%
88% 35% 45%

5%
22 of 25 1 of 22
4%
0% 0% 0% 0% 0% 0% 0%

MOROCCO Region:

0 0 0
some ESG some ESG Firm assurance N/A N/A N/A
2020 16% 60% 8% 16% Limited assurance N/A N/A N/A
2021 2021
2019 Use statutory Firm N/A N/A N/A
88% 28% 56% 16%
0%
22 of 25
0 of 22
Assurance lag (days) N/A N/A N/A
2020 100% 2020 100%
84% 0%
21 of 25 0 of 21
No assurance engagements were performed
55%
2019 50% 2019 50% in Morocco during 2019, 2020, or 2021
45% 45%
84% 0%
48%
43%
38% 38% 38%
33%
21 of 25 0 of 21
0% 0% 0% 0% 0% 0% 0% 0% 0%

NIGERIA Region:

7 9 9
2020 88% 8%
4%
2021 2021
92% 12% 76% 12%
39%
23 of 25
9 of 23
2020 100% 2020 100%
92% 39%
87% 89%
91%
86% 86%
74%
23 of 25 9 of 23 78%
74%
68%
57%
2019 50% 59%
57%
2019 50%
88 % 32% 33% 33%

23 of 25 7 of 22 29% 29%
9% 11% 11%
4% 4% 4%
0% 0% 0% 0% 0% 0%

UNITED ARAB EMIRATES Region:

1 2 5
2021 2021
2019 Use statutory Firm N/A 50% 33%
68% 12% 36% 52%
29%
17 of 25
5 of 17
Assurance lag (days) N/A 142 107
2020 100% 2020 100%
100% 94% 100% 100% 100%
52% 85%
88%
85%
88%
15% 80% 80%
13 of 25 75%
2 of 13
67%
2019 50% 58% 2019 50%
48% 35%
8%
31%
12 of 25 18% 1 of 12 20%
15%
8% 8%
0% 0% 0% 0% 0% 0% 0%

BELGIUM Region:
EUROPE

10 12 13
2021 2021
92% 20% 44% 28% 8%
57%
23 of 25
13 of 23
2020 100% 2020 100%
91%
92% 83% 91% 91%
87%
52% 83%
85%
83% 83% 80%

23 of 25 12 of 23
74%
70%
2019 50% 2019 50%

52% 43% 43%
92% 35%
43%
23 of 25 26%
10 of 23
20%
15%
17%
13%
0% 0% 0% 0% 0%

IRELAND Region:
EUROPE

3 5 9
2020 72% 28% Limited assurance 67% 60% 78%
2021 2021
76% 68% 32%
42%
19 of 25
8 of 19
2020 100% 2020 100%
72% 79%
28%
74%
18 of 25 68% 5 of 18
67% 67%
2019 50%
53% 2019 50%
42% 44%
68% 35%
39%
44% 44%
18% 40% 40% 40% 33%
17 of 25 28% 3 of 17 22% 22%

22% 24% 24%
18%
6%
0% 0% 0% 0% 0% 0% 0% 0%

NORWAY Region:
EUROPE

10 16 19
2021 2021
100% 20% 64% 16%
72%
25 of 25
18 of 25
2020 100% 100% 2020 100%
96% 96%
100% 100%
100% 96%
92%
96%
76%
92%
96%
64% 88%
84%
25 of 25 76%
16 of 25
2019 50%
60% 2019 50%
100% 32% 40%

25 of 25 10 of 25
24%
16%
13% 5% 5% 5%
0% 0% 0% 0% 0% 0%

POLAND Region:
EUROPE

7 7 7
2020 16% 40% 40% 4%
2021 2021
100% 24% 32% 40%
28%
4%
25 of 25
7 of 25
2020 100% 2020 100%
92% 100% 100%
96% 96% 96%

29% 86%
24 of 25 7 of 24
64% 64%
2019 50% 58% 2019 50%

54%
50% 40%
96% 42% 29% 29%
24 of 25 7 of 24 29%
21%
14%
4% 4% 13%
0% 0% 0% 0% 0% 0%

ROMANIA Region:
EUROPE

1 2 4
2020 28% 44% 24%
4%
2021 2021
2019 Use statutory Firm N/A 100% 67%
88% 24% 40% 36%
18%
22 of 25
4 of 22
Assurance lag (days) N/A 42 71
2020 100% 2020 100%
100%
76% 77%
11%
75%
19 of 25 2 of 19
68%
2019 2019
63%
50% 50%
45%
50% 50%
64% 36%
37%
6%
25%
16 of 25 18% 26% 1 of 16
14%
19%
11% 13% 5%
0% 0% 0% 0% 0% 0% 0% 0%

SWEDEN Region:
EUROPE

24 25 26
2020 96% 4%
2021 2021
100% 96%
100%
4%
25 of 25
25 of 25
2020 100% 2020 100%
96% 92%
100% 76%
88%
92% 100%
25 of 25 80% 72% 80% 80%
25 of 25
76% 76% 69%
67%
2019 50%
60% 2019 50%
46%
50%
100% 96%
48%
32% 40%
25 of 25 24 of 25
20%
4%
0% 8% 0% 0% 0% 0%
GRI SASB SDG TCFD Multiple ISAE 3000 ISAE 3410 AA1000 ISO 14064 Other*
*Other standards refer to FAR's RevR 12 examination standard.

SWITZERLAND Region:
EUROPE

16 19 22
2021 2021
100% 40% 52% 8%
72%
25 of 25
18 of 25
2020 100% 100% 100% 2020 100%
96%
100% 92%
96%
84%
88% 88%
76%
92% 92% 68%
25 of 25 17 of 25 68%
68%
2019 2019
63% 63%
50% 56% 50%
100% 60%
48%
27%
25 of 25 15 of 25 18%
21%
20% 19% 19%
16% 9%
13% 11% 6% 11%
5%
0% 0%

MALAYSIA Region:
ASIA-PACIFIC

8 9 13
2020 32% 64%
4%
2021 2021
100% 36% 56%
48%
4% 4%
25 of 25
12 of 25
2020 100% 2020 100%
96% 100% 100%
100% 92% 96% 96% 96% 96% 96%

36%
25 of 25 72% 9 of 25
62%
63%
2019 50% 2019 50% 56%
96% 33% 38%

33%
31%
23%
24 of 25 20% 28% 8 of 24
25% 25%
22% 22%
8% 8%
13%
4%
0% 0% 0%

NEW ZEALAND Region:
ASIA-PACIFIC

11 11 15
2020 60% 32%
4% 4%
2021 2021
100% 12% 68% 20%
52%
25 of 25
13 of 25
2020 100% 2020 100%
96% 80% 42%

72%
24 of 25 10 of 24
2019 50%
52% 2019 50%
44%
100% 36%
42% 40% 42%
46%
36%
46%
40% 36%
33%
36%
33%
36% 36%
33%
25 of 25 10 of 25 27% 27% 20%

24%
18%
8%
4% 9%
0% 0% 0% 0% 0% 0%

PHILIPPINES Region:
ASIA-PACIFIC

8 8 8
2021 2021
100% 16% 60% 20%
32%
4%
25 of 25
8 of 25
2020 100% 2020 100% 100%
96% 100% 96%
100% 100% 100%
100% 84%
96%
84%
32%
25 of 25 68% 8 of 25
75%
71%
60%
2019 50% 2019 50%
52%
96% 44%
33%
33% 25%
24 of 25 8 of 24 25% 25%
21%
0% 0% 0% 0% 0%

THAILAND Region:
ASIA-PACIFIC

13 15 18
2020 12% 56% 28% 4%
2021 2021
100% 40% 32% 20% 8%
68%
25 of 25
17 of 25
2020 100% 2020 100%
96% 96% 96%
100% 100% 100%
96% 91% 58%

83% 83%
24 of 25 14 of 24 77%
67%
60%
2019 50% 2019 50%

60%
54% 53% 44%
92% 52%
39%
42%
28%
33%
31%
23 of 25 26% 12 of 23
11%
17% 15% 13%
0% 9% 0% 0%

METHODOLOGY
40
METHODOLOGY
DATA COLLECTION METHODOLOGY
This study reviewed the environmental, social, and governance
(ESG, or sustainability) reporting and assurance practices in twenty Reports were usually located in one of four locations on a
jurisdictions selected to complement the twenty-two jurisdictions company’s website.
included in prior studies in the State of Play Series. 1. Dedicated sustainability web page for stakeholders
The twenty-five largest exchange listed compan by market 2. Sustainability web page under “About the Company” section
capitalization were reviewed. Company jurisdiction was based
3. Annual reports or downloads section of investor relations web page
on the location of the company's headquarters.
4. Sustainability section of investor relations web page
Europe LATAM Middle East & Africa If a report could not be located on a company’s website, the company
• Belgium • Chile • Egypt name was searched with the term “2019, 2020, or 2021 sustainability
• Ireland • Colombia • Israel report.” When available, reports that covered the year 2019 were
• Norway • Peru • Kenya collected. Four hundred nineteen (419) reports were collected covering
• Poland • Morocco 2019, four hundred thirty-three (433) reports covering 2020, and four
Asia-Pacific
• Romania • Nigeria hundred forty-seven (447) covering 2021. There was a total of one
• Malaysia thousand two hundred ninety-nine (1,299) reports collected.
• Sweden • UAE
• New Zealand
• Switzerland
• Philippines
• Thailand
41
METHODOLOGY
REPORT Reports were classified into three groups: REPORTING Reporting standards were collected from the “About this Report” section.
CLASSIFICATION sustainability reports, annual reports, and STANDARDS Both reporting standards and reporting frameworks were captured due
integrated reports. to inconsistent disclosure regarding their use as standards or frameworks.
Next, any standards or frameworks indexed in the appendix were collected.
Sustainability reports were identified
Finally, a text search for the Global Reporting Initiative (GRI), Sustainability
as those published for the sole or main
Accounting Standards Board (SASB), United Nations Sustainable
purpose of informing stakeholders of
Development Guidelines (SDG), and Taskforce on Climate-related Financial
environmental, social, or governance
Disclosures (TCFD) was used to find additional references within the body
activities and performance. Annual reports
of the report. Standards and frameworks must have been used to report
were identified as those published for the
primary information to stakeholders.
main purpose of informing stakeholders of
financial performance. Annual reports were only collected if they included
sustainability or ESG reporting. Integrated reports were identified as
those published pursuant to the framework issued by the International ASSURANCE
Integrated Reporting Council, now part of the IFRS Foundation through
the consolidation of the Value Reporting Foundation. A company was determined to have obtained assurance if an assurance
For companies that issued more than one report, a hierarchy was used to report that covered ESG data was found within a sustainability, annual,
determine which report to collect. If an integrated report was published, or integrated report; on the company's website; or in other locations
the company was counted as reporting in an integrated report, regardless (typically the website of assurance providers or the CDP database).
of any other publications. If a company published both an ESG report and If a report included more than one assurance report, each report was
published this ESG information within an annual report, the company was reviewed separately.
counted as reporting in an annual report.
42
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IFAC Beyond G20 Sustainability Reporting Assurance

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IFAC Beyond G20 Sustainability Reporting Assurance

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THE STATE OF PLAY

BEYOND THE G20

37% 44% 48% 81%

Our three-year cumulative analysis indicates that while

GHG Other Environmental Social Governance*

REPORTING REPORTING REPORTING REPORTING

ASSURANCE ASSURANCE ASSURANCE ASSURANCE

Almost all companies reviewed reported REPORTING ASSURANCE

STANDARDS & FRAMEWORKS.

447 of 500 companies reported ESG information

2020 17% 47% 23% 13%

2019 24% 43% 17% 16%

jurisdictions—saw 100% rates of sustainability

• The use of integrated reports has increased by

The use of multiple standards and

from 66% in 2019. 76%

• Latin America and Asia-Pacific have the highest

• The Middle East & Africa have the lowest usage

The percentage of ESG reporting standards and frameworks

The use of SASB Standards has grown

The use of the TCFD Framework has

79% 79% AVERAGE RATE OF REPORTING

• Latin America had the highest usage (93%).

84% AVERAGE RATE OF REPORTING

sustainability reporting reference (84%). 69%

• Latin America had the highest (93%).

WHO PROVIDES ASSURANCE. ASSURANCE STANDARDS.

68% 68% 72%

64% assurance reports from 190 companies)

in 2019 in 2020 in 2021

ESG data obtained assurance in 2021—

• Latin America led assurance growth, rising from

• Nine jurisdictions have assurance rates above

Audit firm market share has remained 2019 64% 36%

relatively steady (declining 2%) over

• Europe had the highest rate of audit firm

85% of assurance is limited.

• Other Service Providers perform most reasonable

Assurance rates are increasing across ASSURANCE RATE BY REPORT TYPE

• Companies that include their sustainability

Companies that use an audit firm for

However, regions vary widely: 35% AVG.

• European companies use statutory audit firms 28% AVG.

• Latin American companies use statutory

there are significant differences between

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

2019 50% 2019 50%

* A company may have more than one assurance report 20

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

92% 61% 92%

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

2019 50% 2019 50%

* A company may have more than one assurance report 22

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

44% 91% 82% 82% 45%

* A company may have more than one assurance report 23

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

* A company may have more than one assurance report 24

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

88% 35% 45%

* A company may have more than one assurance report 25

SUSTAINABILITY DISCLOSURE SUSTAINABILITY ASSURANCE

* A company may have more than one assurance report 26