The Ultimate Guide to Global Sustainability Reporting

In today’s regulatory landscape, corporate sustainability reporting is a strategic necessity. Beyond voluntary best practices, various mandatory frameworks now require defined disclosures on environmental, social, and governance (ESG) topics. This guide covers the must-do requirements and popular voluntary frameworks in each region.

🌍 European Union

Mandatory 1: CSRD + ESRS

• What it is:
  The Corporate Sustainability Reporting Directive (CSRD) overhauls the prior Non-Financial Reporting Directive (NFRD), standardising ESG disclosures across the EU. It is supported by the European Sustainability Reporting Standards (ESRS), drafted by EFRAG.
• What it covers:
  • Double materiality: Impacts of sustainability on the company and vice versa
  • Four pillars: Governance; Strategy; Risk Management; Metrics & Targets
  • Sector-agnostic & sector-specific ESRS modules (e.g., for financial institutions, manufacturing)
  • Reporting formats: Mandatory digital tagging (ESEF format)
• Who must report:
  • Large EU-incorporated companies (≥250 employees or €40 M turnover/€20 M balance sheet)
  • Listed SMEs (from 2026, with simplified standards)
  • Non-EU companies with substantial EU revenues (€150 M+)
• Timeline:
  • FY 2024: First reports from companies already in scope under NFRD
  • FY 2025: Next wave of large companies
  • FY 2026–28: Listed SMEs and non-EU companies phased in

Tip: Start scoping material ESG topics now—data gathering often spans multiple functions and geographies.

Mandatory 2: Corporate Sustainability Due Diligence Directive (CS3D / CSDDD)

• What it is:
  A new EU directive mandates human rights and environmental due diligence across companies’ own operations and their value chains.
• What it covers:
  • Identification, prevention, and remediation of adverse impacts on people and the planet
  • Applies to global supply chains, covering suppliers, partners, and contractors
  • Includes climate transition plans aligned with the Paris Agreement
• Who must comply:
  • EU companies with >500 employees and €150 M turnover
  • Non-EU companies with more than €150 M EU turnover
• Timeline:
  • Expected adoption: 2024
  • Enforcement: 2026–2028 (phased by company size)

CS3D complements CSRD by addressing what companies must do, not just what they must disclose.

Mandatory 3: Carbon Border Adjustment Mechanism (CBAM)

• What it is:
  A climate tariff on carbon-intensive imports to prevent carbon leakage and level the playing field for EU industries.
• What it covers:
  • Embedded emissions data for imports of cement, steel, aluminium, fertiliser, hydrogen, and electricity
  • Non-EU exporters must report product-level GHG emissions
  • From 2026, payable certificates will be required to offset embedded emissions
• Who must comply:
  • EU importers of listed goods
  • Non-EU producers exporting to the EU
• Timeline:
  • Oct 2023 – Dec 2025: Transitional phase with emissions reporting only
  • Jan 2026 onwards: Financial obligations begin

CBAM incentivises global decarbonization and ties sustainability reporting directly to trade.

🇬🇧 United Kingdom

Mandatory: SDR & TCFD

• What it is:
  The Sustainability Disclosure Requirements (SDR) set by the FCA embed climate risk reporting into UK listing rules, aligned with the Task Force on Climate-Related Financial Disclosures (TCFD).
• What it covers:
  • TCFD pillars: Governance; Strategy; Risk Management; Metrics & Targets
  • Climate-related financial metrics: Includes greenhouse gas emissions (Scopes 1–3)
  • Product categorisation: Sustainable investment labels under SDR Article 8/9
  • Anti-greenwashing rules: Clear definitions and investor protections
• Who must report:
  • Premium-listed companies and certain commercial entities
  • Large asset managers, life insurers, and FCA-regulated pension schemes
• Timeline:
  • 2022: First TCFD-aligned disclosures for the largest UK-listed companies
  • 2023–24: phased expansion to asset managers and pension schemes
  • 2025+: full SDR rollout, including product-level disclosures

Tip: Leverage your existing climate-risk assessments for TCFD pillars; align narrative with financial statements.

🇦🇺 Australia

Mandatory: Climate-Related Financial Disclosures (CRFD)

• What it is:
  A new regime requiring TCFD-aligned reporting, overseen by the Australian Treasury and ASIC, as part of a broader shift toward ISSB adoption.
• What it covers:
  • Governance: The Board and management oversee climate-related risks and opportunities
  • Strategy: Scenario analysis on revenue impacts
  • Risk management: Processes for identifying climate-related risks
  • Metrics & targets: Scope 1 and 2 emissions (Scope 3 to follow)
• Who must report:
  • Large proprietary companies (>$50 M revenue or >$25 M gross assets)
  • All registered foreign entities with >$50 M Australian revenue
  • Certain financial institutions (banking, insurance, superannuation)
• Timeline:
  • FY 2024–25: First disclosures from largest entities
  • FY 2025–26: Expansion to all in-scope companies
  • FY 2026–27: Mandatory Scope 3 disclosures

Tip: If you have already published to CDP or TCFD, leverage existing data to meet CRFD requirements.

🇮🇳 India

Mandatory: Business Responsibility and Sustainability Report (BRSR)

• What it is:
  The Business Responsibility and Sustainability Report (BRSR) replaces the older BRR, aligning SEBI-mandated disclosures with global best practices.
• What it covers:
  • Nine principles: From ethics & transparency to climate change and diversity
  • Key metrics: Greenhouse gas emissions, water usage, human rights due diligence
  • Value-chain reporting: Detailed disclosures on suppliers and customers
• Who must report:
  • Top 1,000 listed companies by market capitalization
  • From FY 2024–25, an additional BRSR Core format for mid-cap companies
• Timeline:
  • FY 2022–23: First BRSR filings by top 1,000 companies
  • FY 2024–25: Rollout of BRSR Core for expanded universe
  • Ongoing: Continuous updates as SEBI refines metrics

Tip: Map your existing BRR metrics to BRSR fields early to avoid last-minute data gaps.

🌍 MENA Region

Mandatory: Regional Stock Exchange Guidelines

• What it is:
  A patchwork of ESG requirements issued by regional exchanges and regulators, often TCFD-inspired but locally tailored.
• What it covers:
  • Core climate metrics: Emissions, energy consumption, water risk
  • Governance & social: Board diversity, human rights, community impact
  • Custom items: E.g., water scarcity in GCC, supply-chain transparency in Egypt
• Who must report:
  • Listed issuers on ADX, DFM (UAE), Tadawul (KSA), EGX (Egypt)
  • Thresholds vary, often based on market capitalization or sector
• Timeline:
  • 2022–23: Voluntary pilot phases in UAE and Saudi Arabia
  • 2024: Mandatory ESG listing disclosures begin in KSA and Egypt
  • 2025+: Harmonization efforts post-COP28

Tip: Check your home exchange’s latest guidance many are updating requirements annually.

🌱 Voluntary Sustainability Frameworks Explained

While mandatory disclosures are rapidly evolving, voluntary frameworks like GRI and CDP remain crucial tools for companies aiming to demonstrate leadership, enhance transparency, and build trust with global stakeholders.

📘 Global Reporting Initiative (GRI)

• What it is:
  The Global Reporting Initiative is the world’s most widely used voluntary sustainability reporting framework. It provides detailed standards for organizations to report on their environmental, social, and governance (ESG) performance.
• What it covers:
  • Universal standards (GRI 1–3): Reporting principles, general disclosures, material topics
  • Topic-specific standards: Environment (e.g., GHG emissions, waste), social (e.g., labour, human rights), governance (e.g., anti-corruption)
  • Sector standards: Tailored disclosures for industries such as oil & gas, textiles, and agriculture
• Why it matters:
  • Used by >10,000 organisations globally
  • Enables comparability across sectors and countries
  • Supports compliance with CSRD (ESRS references GRI), BRSR, and other regional mandates
• Ideal for:
  • Companies seeking to communicate broader sustainability impacts
  • Organizations with diverse stakeholder groups, including NGOs, customers, and communities

GRI helps tell the full ESG story—beyond what is legally required.

🌍 CDP (formerly Carbon Disclosure Project)

• What it is:
  CDP is a global environmental disclosure platform used by companies, cities, and states to disclose environmental risks, opportunities, and performance — primarily on climate, water, and forests.
• What it covers:
  • Climate change: GHG emissions (Scopes 1, 2, 3), climate strategy, TCFD alignment
  • Water security: Usage, risks, and impacts
  • Forests: Deforestation risks across supply chains
• Why it matters:
  • Backed by over 740 financial institutions with $136+ trillion in assets
  • Scores companies based on disclosure and environmental action
  • Supports CBAM, CSRD, TCFD, and investor ESG mandates
• Ideal for:
  • Companies with climate-related risks or large supply chains
  • Organizations targeting sustainability-conscious investors or customers

CDP is the go-to disclosure channel for environmental leadership and climate risk transparency.

Voluntary Frameworks by Region (Quick Recap)

Looking Ahead: Toward a Unified Global Baseline

With ISSB’s IFRS S1 & S2 on the horizon, many jurisdictions are aligning their mandatory regimes to a common baseline. For multinational organizations, building a centralized data hub capable of feeding CSRD, SDR, CRFD, BRSR, and exchange-specific reports will be the key to efficient, future-proof reporting.

Next Steps:

1. Gap assessment: Map current disclosures to each mandatory framework.
2. Data infrastructure: Implement tools to gather, validate, and tag ESG data.
3. Reporting calendar: Align reporting deadlines and phased rollouts across jurisdictions.
4. Stakeholder engagement: Leverage voluntary frameworks (GRI, CDP) to broaden your narrative.

Need support? Credibl’s AI-powered sustainability platform automates data collection, materiality analysis, and multi-jurisdictional reporting, so you can focus on strategy, not spreadsheets. Get in touch to streamline your global ESG disclosures.