This article originally appeared in Chief Executive on January 24, 2023.

With government regulation lagging, technological outcomes depend on how businesses develop and apply them. It’s important that companies fill that gap by complementing their digital transformation journey with a governance arrangement that drives ethics and builds trust.

Companies conduct materiality assessment to identify, refine and assess potential environmental, social and governance issues which are sufficiently important that they should inform corporate sustainability strategy and reporting. The Conference Board surveyed 50 senior sustainability executives to examine the current trends of materiality practices.

Key trends related to the corporate disclosure of environmental and social practices—encompassing, among others, atmospheric emissions, water consumption, biodiversity policies, labor standards, human rights practices, and charitable and political contributions.

The Conference Board recently released its annual study on the state of corporate sustainability disclosure around the world. The research assesses environmental and social disclosure practices of the 250 largest publicly traded companies domiciled in each of the 10 largest economies (by GDP at purchasing power parity) in North America, Europe and Asia-Pacific. As we look to Asia, what are key trends in reporting practices across the region? Where do we see the biggest challenges ahead?

Research on corporate sustainability reporting finds that large U.S. companies, even in the absence of domestic nonfinancial reporting requirements, are more transparent than their peers in much of the world. Sustainability disclosure by U.S. companies is largely driven by pressure from stakeholders.

Key trends related to the corporate disclosure of environmental and social practices in Europe