Sustainability reporting across the globe has reached a “pivotal” moment, according to proxy advisers ISS, as companies come to terms with major developments in the issue. These include the revision of European standards, the increased traction of new disclosures under the IFRS banner, and the White House effectively killing off efforts to mandate new rules.

Subodh Mishra, global head of communications at ISS STOXX, says trends show that GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board) are falling in popularity across Europe, the Middle East and Africa (EMEA), as companies gear up to adapt to new European reporting rules following a fast-track revision this year.

Mishra says in an ISS report: “The sustainability reporting landscape is at a pivotal moment in 2025. Companies across regions are navigating a complex mix of evolving standards, regulatory mandates and investor expectations.”

ISS figures show adoption of GRI in EMEA cratered from 55% to 37% of the total last year, while SASB adoption slid from 19% to 15%.

Meanwhile, the popularity of TCFD (Taskforce for Climate-related Financial Disclosures) remains “steady” at 56% because much of it has been incorporated into European Sustainability Reporting Standards (ESRS).

Brussels has spent the past few months revising its sustainability reporting laws, including a huge reduction in the volume of the detailed reporting expected under ESRS.

In the Asia Pacific region, TCFD also leads in the popularity stakes with about 63% of the voluntary adoption market last year. This is primarily because many jurisdictions are heading towards mandatory use of IFRS S2, which largely used TCFD as a cornerstone.

Not-so-quiet Americans

However, the world of sustainability reporting remains in a state of development. While the White House cancelled mandatory federal reporting rules, California is pushing ahead with a mandate that will likely drive adoption of TCFD and IFRS S2.

Europe is finalising ESRS. Overall, the data points required for reporting compliance have been cut by 57%, easing the burden on companies. Meanwhile, broader changes in Europe mean the number of companies subject to reporting demands is about to be cut substantially.

Elsewhere in the world, the biggest influence will likely be IFRS S1 and S2—standards launched in 2023 by the International Sustainability Standards Board, a sister body to the IFRS Foundation.

At a recent conference, it was heard that nearly 40 jurisdictions, covering 60% of global GDP were adopting or are in the process of adopting IFRS S1 and S2. The UK is working on adoption too, to create UK Sustainability Reporting Standards. Publication is expected soon.

Mishra notes that developments are coming thick and fast. “Against this backdrop, a question that often arises among corporates is: ‘What should we use for reporting now?’ It is a good question, and one worth considering given the pace of change in sustainability standards.”