Global ESG Monitor 2024 Highlights Energy Sector's Sustainability Reporting Challenges

The Global ESG Monitor 2024 has revealed that energy companies are reporting on a wide array of sustainability topics, with an average of 8.4 material topics identified per company. Despite this, the reports often lack depth and context. Stakeholder integration and due diligence principles are adhered to, yet biodiversity reporting remains shallow, scoring only 35 points on average.

Compliance with the European Sustainability Reporting Standards (ESRS) is notably low, averaging 41%. Only one company achieved 72% compliance. The average score among energy companies was 46 points, just slightly above the overall study average.

Michael Diegelmann from the Global ESG Monitor emphasized the need for transparency to meet the rising expectations of stakeholders. Ariane Hofstetter recognized the foundation laid by current materiality analyses but stressed the necessity for more detailed reporting to improve ESRS compliance.