Based on the increasing expectations from investors, regulators and society on firms to transparently report on their sustainability achievements, this article analyzes the current state of nonfinancial reporting in Switzerland and globally. The analysis is based on the reporting period 2017-18 regarding: (1) A global survey of institutional investors to examine their views on the use of nonfinancial information in investment decision making; (2) A snapshot on the uptake of the TCFD recommendations across 18 markets, 11 key sectors and over 500 companies; (3) How Switzerland’s largest companies report on nonfinancial information. The results show that (1) investors increasingly rely on nonfinancial information while issuers are getting better at assessing materiality, but there is still considerable room for improvement. Further, investors report that the four main ESG factors considered are governance, supply chain, human rights and climate change. (2) Although an increasing share of corporations consider climate-related risks and opportunities, most companies are lacking high quality disclosures aligned to the TCFD recommendations. (3) The share of sustainability reporting and its (partial) integration in the annual report among the largest Swiss corporations is increasing, while also external assurance on nonfinancial information slightly increases.
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