• 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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ESG News Editorial Team

The ESG News Editorial Team is comprised of veteran financial journalists and sustainability analysts dedicated to providing real-time, objective reporting on global ESG regulations, climate finance, and corporate governance. Our desk monitors daily developments from the SEC, IFRS, CSRD and international regulatory bodies to ensure our 1M+ readers receive accurate, data-driven insights into the evolving sustainable investment landscape. Follow the ESG News Editorial Team for expert reporting on global sustainability standards, ESG disclosures, and climate policy. Access over 10,000 investigative reports and real-time updates.