In today's world, where climate change deeply impacts the economy and societies, fostering sustainability and resilience in the corporate sector is key.  Companies are central to the shift towards a sustainable, low-carbon economy. While most large companies already disclose sustainability information, its quality must improve and it should be reviewed externally. The OECD recommends that:

• Sustainability-related disclosure frameworks remain flexible based on capacities of companies;
• Standard-setters work together to make their standards as interoperable as possible, reducing the costs for companies that must disclose information;
• Regulators in regions where voluntary assurance is a common practice may consider requiring large listed companies to obtain third-party assurance of their sustainability-related information;
• Wherever high-quality assurance for all sustainability-related information disclosed might be too costly, jurisdictions may require companies to obtain assurance of specific metrics, such as GHG emissions.

As the largest owners of equity (41%) in the 100 listed companies that disclose the highest GHG emissions globally, institutional investors have an important role to play in emissions reduction. However, investors lack relevant information to make investments in highly innovative companies that may contribute to the transition to a low-carbon economy. OECD analysis shows that only a handful of listed companies currently disclose their investments in research and development in new technologies that may contribute to the transition. Regulators could require or recommend that companies disclose information that investors would find relevant to assess the potential of companies to develop greener technologies.  

To manage its sustainability risks, a company  may, among other policies, establish a dedicated board committee. Such a committee may be seen as a measure of the importance given by a board to sustainability risks. Companies representing more than half of  global market capitalisation have established a committee responsible for overseeing the management of sustainability risks and opportunities which reports directly to the board. In the United States, 75% of companies by market capitalisation have a committee responsible for sustainability, and in Asia excluding China and Japan, Europe and Other advanced economies, more than 50% of companies have one.