• Sustainable finance on the rise: 51% of companies use sustainable finance, with green bonds leading at 53%.
• Gaps in gender diversity targets: More companies disclose gender data, but few set diversity targets beyond gender.
• Decarbonization lagging: Scope 3 emissions remain underreported, with 44% of companies not disclosing data.

The Shift Toward Sustainability

Emerging market companies are accelerating sustainability efforts, driven by financing trends, regulatory expectations, and climate commitments. A study of 104 firms across six sectors (Energy, TMT, Transport, Mining, Water & Waste, and Cross-Cutting) reveals key sustainability trends.

Sustainable Finance Adoption

51% of companies have embraced sustainable finance. Green bonds (53%) are the most utilized, followed by sustainability-linked bonds (30%) and loans (25%). The Water & Waste (75%) and Energy (74%) sectors lead in sustainability-linked finance, while Transport lags at 16%.

“Companies are increasingly leveraging sustainable finance instruments to fund their transition efforts.”

Gender Equality & Inclusion

Most firms disclose gender-related data, but few set concrete diversity targets. Mining and Energy sectors lead in reporting, while TMT, Transport, and Water & Waste sectors have room for improvement.

“Inclusion should go beyond gender to address underserved groups and communities.”

Decarbonization & Nature-Based Solutions

Energy companies lead in setting comprehensive emissions targets, with 38% covering Scopes 1, 2, and 3. Transport firms are the most committed to carbon neutrality (42%), but overall, 44% of companies fail to report Scope 3 emissions.

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“Standardizing Scope 3 metrics will enable better benchmarking and decision-making.”

Firms are also prioritizing biodiversity, conservation, and sustainable land management. Yet, adoption of nature-based disclosure standards is slow—only 10 out of 104 companies have adopted Taskforce on Nature-related Financial Disclosures (TNFD).

Community Benefit-Sharing

Among 25 energy and infrastructure companies analyzed:

• 84% report education and skill-focused initiatives.
• 48% focus on humanitarian support and environmental protection.
• 44% disclose health-related projects.
• 8% highlight climate resilience efforts.

Latin America and Africa see a focus on cultural heritage preservation, infrastructure, education, and healthcare improvements.

Looking Ahead

COP29 agreements will drive more climate financing, with funds set to triple to $300 billion annually by 2035. Multilateral development banks have also pledged $120 billion annually by 2030 to support climate initiatives in low- and middle-income countries.

To accelerate progress, companies must:

• Improve Scope 3 emissions reporting.
• Enhance transparency in gender diversity targets.
• Expand biodiversity and nature-based solutions to unlock funding opportunities.

“Companies that proactively integrate sustainability will secure stronger financial and operational resilience.“

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