Business at OECD - the business advocacy organisation within the Organisation for Economic Cooperation and Development (OECD) – has issued a report on the complexity and costs associated with ESG reporting.
Based on a survey of its members, it highlighted the lack of international alignment across frameworks, definitions and timelines as a particular challenge for companies.
Most (57%) respondents cited compliance complexity as a major challenge, while 62% identified the lack of preparedness within their supply chains. While 49% said high costs are a current challenge, 83% said they expect the costs of reporting to increase.
Business at the OECD has recommended that national governments reduce the number of mandatory reporting metrics, adopt phased approaches to regulation, harmonise reporting timelines and accept reporting under global standards as equivalent to domestic requirements.
It also called on the OECD to promote regulatory coordination and support long-term policy convergence on ESG reporting.
