Research

Global trends in sustainability reporting: From voluntary to mandatory

10 September 2025 10:00 RaboResearch

Sustainability reporting is becoming a global norm for listed and large food and agribusiness companies, with a path toward consistent and reliable sustainability data.

Intro

    Though still in its early days, sustainability reporting is becoming a global norm. The question for listed and large food and agribusiness (F&A) companies is no longer if to comply but how. The path may be uneven, but the direction toward consistent, relevant, and reliable sustainability data is set. The global adoption of mandatory sustainability reporting rules is accelerating, but regulations differ across jurisdictions in terms of the types of companies in scope, the range of environmental, social, and governance (ESG) themes covered, and whether they follow a single or double materiality approach. Compliance costs are rising as companies step up voluntary reporting processes to meet more extensive mandatory rules. Meanwhile, inconsistent data availability and quality across value chains add costs and limit the reliability and comparability of sustainability disclosure. Developing standardization, digitalization, and assurance practices will gradually address these challenges, improving usability for companies and investors. The emergence of the International Sustainability Standards Board's (ISSB) sustainability standards, now endorsed by over 30 jurisdictions, signals a significant step in that direction. By encouraging companies to manage what they measure, the global development of mandatory reporting fuels the transition to more sustainable production and processing and helps level the playing field. Proactive firms can use insights from sustainability data to reduce risks and negative impacts, potentially lowering the costs of capital, attracting offtakers, and building trust with sustainability-sensitive buyers and investors.

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