Global ESG regulation increases by 155% over the past decade

by | Jun 20, 2023

New ESG Book research shows the rapid growth of sustainability-based policy interventions since 2011, as ESG regulation shapes financial markets.

ESG Book, a global leader in sustainability data and technology, has released new analysis showing that global ESG regulations have increased by 155 percent over the past decade, as the rapid growth of sustainability-based policy interventions continues to shape financial markets.

According to the research, 1,255 ESG regulations have been introduced worldwide since 2011, compared to 493 regulations published between 2001 and 2010. Since the turn of the millennium to the present day, there has been a 647 percent increase in ESG regulations.

The latest analysis is taken from the Reporting Exchange, ESG Book’s solution that provides access to real-time ESG reporting requirements, standards, and indicators.

With the global reporting landscape becoming ever more complex for companies and investors, understanding what, where, and how to report sustainability information, while keeping up to date with the latest developments, is increasingly challenging and time consuming.

Originally developed by the World Business Council for Sustainable Development (WBCSD), the Reporting Exchange is the world’s largest ESG policy and regulation database. Now delivered through ESG Book’s digital platform, the Reporting Exchange covers over 2,400 ESG regulations covering more than 80 jurisdictions worldwide, which are updated in real-time.

The Reporting Exchange enables users to monitor more than 100 subjects across environmental, social, and governance dimensions for over 100 sectors worldwide, with the majority of ESG regulations spread across four main themes including climate, human rights, biodiversity, and diversity and inclusion.

Users can also explore over 1,700 unique quantitative ESG reporting indicators, digitised and mapped across the dominant industry standards and frameworks including the Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), and Sustainable Finance Disclosure Regulation (SFDR).

Dr Daniel Klier, CEO of ESG Book, said: “ESG regulation is today a hot topic, sparking debate across financial markets. On one hand, proponents argue that it is a vital step towards creating a more sustainable and resilient world, where businesses are held accountable for their environmental impact, social responsibilities, and governance practices. On the other hand, some critics argue that ESG regulation burdens companies with excessive compliance, and can hinder economic growth.”

“The sharp rise in ESG regulation is only going to continue, however, as markets seek more effective and transparent allocation of capital to sustainable outcomes. Through the Reporting Exchange, we provide corporates with the tools necessary to navigate an increasingly complex global reporting landscape.”

With 150,000 disclosures, ESG Book’s platform provides clients with pre-populated data and analytics on public securities, as well as the ability to directly request ESG disclosures from private companies – combining public market ESG information with privately collected data.

ESG Book serves over 100 institutional clients, including some of the world’s largest financial organisations including BNY Mellon, Citi, JP Morgan, Goldman Sachs, and State Street. In April 2023, it was announced that ESG Book’s data is now accessible on every Bloomberg Terminal worldwide, and available as the only third-party ESG data feed for Bloomberg Data License customers.

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