I was shocked to recently learn when reading the PracticalESG.com Blog that The Conference Board has reported that the number of US public companies issuing sustainability reports fell 52% year over year (January 1–June 30) based on Russell 3000 companies. Editor Lawrence Heim notes in the blog:

Reasons for this include regulatory uncertainty, US governmental policy changes and a fundamental reassessment of sustainability reporting to begin with. Last month, I posed the question

“How often is reporting itself assessed for materiality [to external audiences]? Might be worth considering. I’ve written before about Robert Eccles and Tim Youmans 2015 ‘Statement of Significant Audiences and Materiality’ to specifically clarify the primary intended audiences for ESG reporting and context for materiality determinations – it can also be used to evaluate the importance of voluntary disclosures to begin with.”

Looks like there may be some momentum behind stopping (you physics folks – go ahead and explain that…)

On a related note: As we continue our research project on how companies present financial data on sustainability benefits, I have noticed exactly what The Conference Board found. The number of companies that have not updated reports since 2023 has been surprising.

This trend really took me by surprise, because the clients that I work with have been updating their sustainability reports as usual. If you do not have a subscription to PracticalESG.com, I encourage you to email info@ccrcorp.com to sign up today, or sign up online.

– Dave Lynn