The Global Reporting Initiative’s (GRI) 2024 ‘Carrots & Sticks’ report has found continued growth in ESG and disclosure policies, highlighting the addition of 214 new policies globally in the last year. The Carrots & Sticks database now includes 2,677 ESG and sustainability policies – a 9% increase since 2023. Disclosure polices account for more than half of total sustainability policies at 1,421. The database outlines related legislation from 133 countries, almost doubling from 88 in 2020. The report noted a shift in policies classified as mandatory and voluntary, with mandatory policies falling from 44.8% to 42% and voluntary policies rising to 58%. The number of both voluntary and mandatory disclosure policies saw a decline between 2023 and 2024. According to the report, the GRI is referenced in 18% of ESG regulations globally. “The latest Carrots & Sticks findings highlight an increasing focus by governments and regulators towards legislative measures that encourage companies to address global sustainability challenges, alongside recognition of the role of transparency, including for supply chain impacts, in driving effective decisions by all stakeholders,” said Peter Paul van de Wijs, GRI’s Chief Policy Officer. “However, to drive meaningful progress, a transition to robust mandatory policies is essential, complementing the predominantly voluntary disclosure landscape we see today.” Last week, GRI and non-profit CDP signed a memorandum of understanding at COP29 in Azerbaijan, furthering their collaboration to streamline environmental reporting.
