Companies fail to disclose mandatory SFDR indicators globally

ESG Book data

Disclosure against mandatory indicators under the EU's Sustainable Finance Disclosure Regulation is significantly low across the 10,000 largest firms worldwide, Investment Week can reveal.

Data provided by ESG Book found that some measures, such as the share of non-renewable energy versus renewable energy consumption, were reported by just 0.4% of firms. Overall, the majority of companies do not make any disclosures against 12 of the 17 mandatory indicators. The mandatory measures, known as Principle Adverse Impacts (PAIs), are a set of 14 mandatory indicators (with the first containing three indicators to disclosure Scope 1, 2 and 3 greenhouse gas emissions), and 31 voluntary indicators. According to Article 4 of SFDR, financial market participants are obligated to ...