This first OECD Global Corporate Sustainability Report is published at a pivotal moment. The integration of material sustainability matters into the core strategies of companies is not just desirable, but it is now considered as an imperative by investors. This report is an essential tool, illuminating the evolving dynamics and regulatory frameworks governing corporate sustainability. The report offers a wide-ranging overview of current market practices, delving into the nuances of sustainability-related disclosures, the dynamics of shareholder engagement, the evolving responsibilities of corporate boards and the complex web of stakeholder interests.
The insights in this report are the culmination of thorough research and analysis, synthesising the knowledge and perspectives of policy makers, industry experts and academic scholars. It builds on previous work of the OECD Directorate for Financial and Enterprise Affairs on climate change and corporate governance globally, as well as on sustainability policies and practices for corporate governance in Asia and Latin America. The report also benefits from the new chapter on sustainability and resilience of the G20/OECD Principles of Corporate Governance, which were recently revised through an inclusive process involving the OECD Corporate Governance Committee, G20 and Financial Stability Board jurisdictions, and numerous participants in a public consultation.
The primary goal of this report is to stimulate dialogue among capital market players – spanning corporate executives, investors, policy makers and thought leaders. It seeks to spur action towards building a more sustainable and resilient corporate governance framework. In crafting this report, we have striven to blend incisive analysis with practical advice, ensuring that it serves both as a mirror to current practices and a compass for future endeavours. The evolving landscape of corporate sustainability presents both challenges and opportunities. This report aims to demystify the complexities of this landscape, offering clarity and direction to businesses, investors and policy makers navigating these uncharted waters.
As the world grapples with acute environmental and social challenges, the role of corporations in fostering a sustainable future becomes increasingly critical. This very notion also served as the driving force behind the recent update of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. This report can be a valuable tool in evaluating companies’ adherence to some of the recommendations in the updated Guidelines.
Through this report, we aim to contribute to a deeper understanding of corporate sustainability and to spur a concerted effort towards meaningful and lasting change in the corporate sector. The journey towards sustainability is ongoing and this report is a step towards navigating that journey with robust evidence, responsibility and an unwavering commitment to a better future.
Carmine Di Noia
Director for Financial and Enterprise Affairs, OECD