Policy Brief, Sustainability Reporting

PB 2/2022: Closing the transparency gap: Germany’s G7 presidency is an opportunity to promote sustainability reporting internationally

  • The German G7 presidency presents the opportunity to advance a central pillar of sustainable finance at the international level: mandatory disclosure of ESG risks and impacts.
  • Without mandatory disclosure, it remains difficult for investors to shift capital toward more sustainable investments.
  • More international alignment of disclosure regulation would facilitate the flow of sustainable finance across borders and greatly reduce compliance cost of financial and non-financial corporates.
  • Germany could underline its claim to leadership in sustainable finance and contribute to setting ambitious international standards.
  • This policy brief presents the seven key building blocks of effective ESG disclosure regulations, which is the relevant level of disaggregation for a meaningful discussion about international policy coherence.
  • It provides specific recommendations and learning opportunities relevant for policy development and effective implementation (see Figure 1 on next page).
  • All recommendations are based on a comprehensive analysis of ESG disclosure regulations implemented and planned in the member states of the International Platform on Sustainable Finance (IPSF), Brazil, and the US.
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