Development and Divergence of ESG Reporting Standards in the EU and UK

In the past decades, investors have been more eager to finance sustainable initiatives and firms, especially through the lens of Environmental, Social, and Governance (ESG) criteria. This heightened interest brought the introduction of new regulatory frameworks aimed at enhancing transparency in sustainability practices. This study aims to explore how countries, both within and outside the European Union, are implementing new ESG reporting standards and practices. This is achieved by analysing directly the annual reports of a sample of firms listed in the STOXX® Europe 600, focusing on those in the manufacturing sector and categorized under NAICS code as Pharmaceutical, Chemical and Petrochemical firms. Moreover, the study examines the development of the legal framework that controls for sustainable transparency, highlighting differences and similarities between countries.