REGULATION & FRAMEWORKS
Current and Future Reporting Trends
Global sustainability reporting is fragmenting into regional frameworks (EU CSRD/SFDR/ESRS, US SEC, California, Asia) while reaching toward international standards (ISSB, TCFD, GRI, SASB). The EU CSRD is becoming a de facto global standard.
- [01]
EU leads with CSRD, SFDR, and ESRS; the US has SEC climate rules and California regulations; international convergence via ISSB.
- [02]
Double materiality is the EU standard — companies report both financial materiality of ESG and impact materiality of operations.
- [03]
CSRD affects ~3,000 US companies even without EU incorporation — making it de facto global.
- [04]
ESG rating agencies (Morningstar, MSCI, S&P, Refinitiv, Bloomberg) use divergent methods; correlation between scores is low, creating arbitrage and confusion.
- [05]
Greenwashing litigation surge: SEC enforcement, FTC advertising rules, private class actions.
"If they comply with the CSRD, they will likely meet SEC and California requirements as well. This effectively makes the CSRD a global standard."
Mark Golovcsenko
Principal, US Strategy practice · KPMG
"If they comply with the CSRD, they will likely meet SEC and California requirements as well. This effectively makes the CSRD a global standard."