Normative and Market Instruments of Sustainability

Sustainability reporting disclosure regulations and frameworks have evolved over time to support corporations in fulfilling regulatory obligations while also serving as an information signaling of their sustainability-related activities and commitments. In many jurisdictions including Europe, regulations mandate companies to report on ESG performance, ensuring transparency and accountability, and many reporting frameworks are currently under development and refinement to ensure optimal disclosure which forms the basis for ESG scores and ratings. A number of ESG providers have emerged over the last decades providing stakeholders with comprehensive insights into companies’ ESG practices and enabling benchmarking and comparative analyses.