As governments, investors, and other private market players and stakeholders increasingly prioritize sustainability, companies face challenges in navigating evolving disclosure regulations and standards. The proliferation of sustainability-related disclosure requirements—including the Corporate Sustainability Reporting Directive (CSRD)/European Sustainability Reporting Standards (ESRS), the International Financial Reporting Standards (IFRS) S1/S2 established by the ISSB, the U.S. SEC Climate Disclosure Rule, and California’s Senate Bills (SBs) 253 and 261—underscores the urgency for companies to enhance transparency, accountability, and consistency in their sustainability reporting. 

This report provides a comprehensive assessment of these key sustainability standards and regulations. It contains two detailed comparison tables; the first covers general elements and the second compares climate-specific elements. 

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Key takeaways 

  • The proliferation of climate- and sustainability-related disclosure requirements across jurisdictions means companies will likely need to comply with more than one regulatory framework.  
  • Companies subject to multiple regulations may feel an additional reporting burden as they approach compliance; understanding the similarities and differences between each regulation’s requirements may improve disclosure accuracy and efficiency. 
  • There is considerable overlap across major sustainability-related disclosure regulations, particularly the CSRD/ESRS, IFRS S1/S2, SEC Rule, and CA SB 253/261; alignment with one means at least partial alignment with others. Whether mandatory or voluntary, these frameworks compel companies to communicate ESG-related risks, outline their ESG strategy, disclose their ESG targets and related progress, and strengthen their ESG governance. 
  • Each aligns with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. Companies can reduce their reporting burden by aligning with these recommendations. 
  • Sustainability disclosure should be more than a compliance exercise; each of the regulations and standards outlined in this report can and should be leveraged to generate additional business value for the reporting entity. 

By understanding and aligning with the requisite standards and regulations, companies can leverage efficient preparation as a strategic advantage, positioning themselves favorably in an increasingly conscientious marketplace. Coordinated preparation reduces reporting burden and associated costs, while permitting compliance across jurisdictions. 

As the global demand for transparent and accountable business practices surges, those who prioritize sustainability will not only comply with regulations but will also thrive amid growing stakeholder expectations. The time is ripe for organizations to advance their compliance efforts and capitalize on the value creation potential associated with robust, compliant sustainability disclosures.