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- 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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