Sustainability Reporting Standards - A Beacon of Hope for Society and Our Planet - Jose Alexandre Machado Costa - ASWQ V3I2 - March 2025

The demand for transparency in corporate sustainability has led to significant advancements in reporting standards. Europe, through the European Sustainability Reporting Standards (ESRS), and the global initiative by the International Sustainability Standards Board (ISSB), have set benchmarks for sustainability disclosures. In 2024, the SEC introduced rules requiring climate-related disclosures in the U.S. These developments aim to enhance corporate responsibility, transparency, and harmonization of reporting practices worldwide. Notably, the ESRS follows a double materiality approach, focusing on both financial and societal/environmental impacts, while ISSB emphasizes financial materiality. By 2025, the European Commission Omnibus proposal is expected to streamline regulations and increase investments. Though challenges remain, including complexities in aligning multiple standards and political resistance, these frameworks can drive meaningful sustainability progress. The article highlights how these standards could lead to long-term value creation by integrating sustainability into corporate strategies.