88% of Belgian Companies Now Report on Sustainability Ahead of Mandatory CSRD: KPMG Report
- Rising adoption: 88% of Belgian companies disclose sustainability performance, exceeding the global average of 79%.
- Leadership focus: 53% of Belgian firms have appointed board or leadership oversight for sustainability (23% increase since 2022).
- Double materiality progress: 47% of companies align with the EU’s CSRD requirements.
The News:
KPMG’s 2024 Survey of Sustainability Reporting highlights strong sustainability reporting progress among Belgian companies, driven by upcoming EU regulations and a growing focus on governance and transparency.
Key Trends in Belgium:
- Sustainability reporting goes mainstream:
- 88% of companies now report on sustainability performance, a 4% rise since 2022.
- 71% integrate sustainability into annual reports.
- Adoption of reporting standards:
- GRI is the leading framework (38%), while SASB and stock exchange guidelines show growth.
- Voluntary standards remain vital as firms prepare for mandatory compliance.
- Formal assurance increases:
- 38% of companies obtained third-party assurance, up 13% from 2022.
- Only 1% achieved reasonable assurance, reflecting opportunities for improvement in verification.
- Double materiality focus:
- 47% of Belgian companies adopted double materiality, a requirement under the CSRD.
- This approach integrates both financial effects and impact on society and the environment.
- SDG reporting declines:
- 64% reported on specific SDGs, down slightly but still above the global average of 59%.
- Just 12% disclosed both positive and negative impacts, signaling a need for deeper alignment.
- ESG risks gain traction:
- 62% of companies identified climate change as a key risk, with social (53%) and governance (39%) risks also noted.
- Biodiversity loss concerns rose to 26%, though still below global averages.
- Sustainability governance strengthens:
- 53% of firms assigned board-level oversight, a 23% increase since 2022.
- This aligns Belgium with G250 standards (54%).
Related Article: Hong Kong Mandates Full Sustainability Reporting for Public Entities by 2028
Why It Matters:
Belgian companies are taking significant strides toward aligning with EU sustainability regulations like the CSRD. Progress in governance, double materiality, and assurance reflects proactive preparation for mandatory reporting requirements.
With rising global expectations, Belgian firms are positioning themselves to meet investor demands for transparency and sustainability leadership.
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