The Organization for Economic Co-operation and Development (OECD) has recently published the Global Corporate Sustainability Report 2024. The sustainability dataset used for this analysis covers over 14,000 companies listed on 83 markets. These companies collectively represent a staggering total market capitalization of USD 90 trillion.

Key Findings:

• Worldwide, nearly 9,600 publicly traded companies revealed sustainability-related data in 2022 or afterward. These companies, accounting for 86% of the global market capitalization, have attracted increased attention from investors due to the growing urgency in addressing climate-related risks and opportunities, particularly regarding greenhouse gas (GHG) emissions. Approximately two-thirds of the companies disclosing sustainability information by market capitalization have their sustainability disclosures externally assured by a service provider. Additionally, around 70% of companies, ranked by market capitalization, disclosed a target for reducing GHG emissions, with almost half of them aiming for the year 2030.
• Climate change is acknowledged as a financially consequential risk for publicly traded companies, encompassing 64% of the global market capitalization. Companies exposed to risks associated with climate change, human capital, and data security typically exhibit larger market capitalization in contrast to companies confronting other sustainability-related risks, such as ecological impacts or human rights concerns.
• An examination of the top 100 publicly listed companies with the highest disclosed greenhouse gas (GHG) emissions globally reveals that institutional investors possess the largest portion of equity (41%), while the public sector also holds a significant stake, accounting for 18% of the equity. The distribution of ownership becomes especially crucial when assessing investors’ capacity to drive the transition toward a low-carbon economy through effective engagement strategies.
• Notably, in Delaware, the number of private Public Benefit Corporations (PBCs) increased from 207 in 2021 to 332 in 2023, while the count of listed PBCs doubled from 7 to 14. Similarly, in France, the number of private sociétés à mission rose from 502 in 2021 to 1,276 in 2023, with publicly listed sociétés à mission growing from 3 to 8 during the same period.
• More than half of the global market capitalization is represented by companies that have established committees tasked with overseeing sustainability risks and opportunities. In the United States, around 75% of companies, based on market capitalization, have dedicated sustainability committees. Similarly, in Asia (excluding China and Japan), Europe, and other advanced economies, over 50% of companies have such committees. Moreover, nearly 3,000 companies, amounting to 53% of the global market capitalization, have boards of directors responsible for overseeing climate-related matters, with notably higher proportions observed in Europe, Japan, and the United States. About three-fifths of companies integrate executive compensation policies linked to performance metrics, incorporating a variable component based on sustainability-related factors. Specifically, 80% of companies by market capitalization in Europe and 60% in the United States incorporate sustainability considerations into executive compensation.
• About 14% of the worldwide market capitalization is comprised of companies that include employee representatives on their board of directors. The occurrence of employee representation differs across regions, with rates of 62% in China, 38% in Europe, and 11% in Latin America, while other regions exhibit minimal levels of such representation. Furthermore, in 2022, 81% of companies, based on market capitalization, disclosed policies regarding shareholder engagement.
• In 2023, the total value of sustainable bonds issued by the corporate sector worldwide reached USD 2.3 trillion. Europe stood out as the leading region in the sustainable bonds market, representing 45% of the total issuance by non-financial companies from 2014 to 2023. It’s noteworthy that unlisted companies contributed about half of the sustainable bond issuance in both the non-financial and financial corporate sectors during the period of 2022-23.
• A similar trend is observed in investment funds that label themselves as sustainable or climate funds. These funds have experienced increasing net inflows since 2016. However, it’s important to note that assets under management of sustainable funds still represent only 2.76% of the total assets managed by the global investment funds market.

For more information see: https://www.oecd.org/fr/gouvernementdentreprise/global-corporate-sustainability-report-2024-8416b635-en.htm