Voluntary National Review (VNR) Analysis 2023

Governments increasingly acknowledge the private sector's critical role in sustainable
development and progressively involve it in VNR development. Transparency andsustainability reporting are becoming more integral to SDG implementation andmonitoring. However, to unlock the full potential of sustainability reporting, it isessential that the data can effectively inform national sustainable developme nt policies
and plans as well as SDG follow-up and review mechanisms

VNRs are presented annually at the UN High-Level Political Forum (HLPF), as part of the review
mechanisms for the 2030 Agenda. Every year, GRI analyzes all VNR reports to identify goodpractices and monitor the progress of SDG implementation, particularly Target 12.6.
In 2023, 39 countries participated in the VNR process, resulting in 33 reports being submitted.
This year marked a significant milestone as the EU submitted its first Voluntary Regional Report.
To better understand the landscape of SDG progress, we have enriched our VNR analysis withinsights from the 2023 edition of the Carrots & Sticks (C&S) report.1, and the KPMG Survey of
Sustainability Reporting, which assesses trends in corporate sustainability reporting.

Voluntary National Reviews (VNRs) are the process through which countries assess
and report on their progress in implementing the 2030 Agenda and its 17 Sustainable
Development Goals (SDGs). VNRs enhance transparency by making national progress
information public and contribute to global understanding of SDG progress. They foster
learning and collaboration by sharing achievements, experiences, innovative
approaches, and challenges in implementing the 2030 Agenda. VNRs are crucial for
tracking and ensuring effective implementation of the 2030 Agenda at both national andglobal levels. These reports are submitted to the United Nations and presented at theHigh-Level Political Forum on Sustainable Development (HLPF), the main platform forreviewing progress on the SDGs at the global level.

1

Chalmers, Adam William, Robyn Klingler-Vidra, Cornis T. Van der Lugt, Peter Paul van de Wijs & Tabitha Bailey (2023). Carrots & Sticks: Beyond Disclosure in ESG and
Sustainability Policy. Annual Report. University of Edinburgh, King’s College London, Global Reporting Initiative (GRI) and the University of Stellenbosch Business School (USB).

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I. Governments and the private sector are working together more on SDG
implementation
91% of the countries referenced private sector involvement in the VNR process
The upward trajectory of private sector involvement is a cause for optimism. In 2016, this number
stood at 85% and fluctuated, going to 95% in 2017, 93% in 2018, and 82% in 2019. It peaked in2020 at 98% and then decreased to 80% of reports in 2021. In 2022, this rose again to 92% andremained steady at 91% in 2023. The relatively consistent trend of high private sector
involvement is encouraging. The steady reference rate across countries indicates a sustainedcommitment to engage the private sector in SDG implementation.
VNRs inform sustainable development strategies and priorities, so it is crucial that governments
involve the private sector in this process to ensure meaningful stakeholder engagement. This isparticularly relevant given that businesses are integral to society and significantly impact theachievement of SDGs. Achieving many SDG targets wouldn’t be possible without the private
sector, as companies influence SDG implementation and contribute both positively andnegatively to sustainable development through their operations, products, services, and value
chains.

Public-private partnerships are recognized as essential to reaching the SDGs.
Partnerships and collaboration between the public and private sectors are critical means ofachieving the SDGs. The analysis shows that, in 2023, 100% of reports referenced public-private
partnerships to achieve the SDGs.
We observe that references to public-private partnerships experienced a sharp increase in 2019 at
98% before dropping to 54% in 2020. In 2018, this figure was at 67%; in 2017, it was 44%; and in
2016, it was at 85%. Positively after 2020, this rose again to 90% in 2021 and then 100% in 2022
and 2023.
Fluctuations may be influenced by regional differences and groups of countries presenting their
VNRs. Despite these fluctuations, it is encouraging that the last three reporting cycles of VNRs
have shown consistently high levels of reports referencing public-private partnerships. This trend
suggests an increasing recognition globally of the importance of collaborative efforts between the
public and private sectors in addressing complex sustainable development challenges.

93% of VNR reports referred to the private sector’s contribution towards the SDGs.
This data point began to be collected in 2020 and has shown a steady increase each year, from
79% in 2020 to 90% in 2021, and reaching 97% in both 2022 and 2023. The increasingreferences to the private sector's contribution towards the SDGs in VNR reports reflect a growing
awareness from governments of the private sector's significant role in SDG implementation. This
trend, coupled with the increasing tendency of private sector involvement in VNR
processes, indicates a deeper integration of the private sector perspectives into nationalsustainable development review processes and mechanisms.
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The increased number of reports each year referencing Public-Private Partnerships (PPPs)
highlights a growing collaborative effort. The growing involvement of the private sector in VNR
processes underscores their role in serving as a catalyst for enhanced coordination and alignment
between the public and private sectors. Additionally, the increased voluntary reporting and growing
mandatory reporting requirements mean that countries have access to quality data on the private
sector’s impacts on the economy, environment, and people. This combination may have driven
governments to more actively engage with businesses to harness their potential in driving progress
towards the SDGs.
While the increasing involvement of the private sector in VNR processes is encouraging, it is
crucial to gain deeper insights into the nature of these references. Understanding the quality of
public-private sector engagement is essential to ensure the effective integration of the latter into
national development plans, and to verify whether these references reflect substantial andmeaningful actions and contributions. This understanding is crucial for the effective implementationof the SDGs. However, the previously mentioned trends demonstrate a growing inclination towards
embracing a more participatory process through a whole-of-government and whole-of-society
approach to tackle complex sustainability and societal challenges, as well as to enhance SDG
follow-up and review mechanisms.

II. References to sustainability reporting are on the rise, but availability of dataon SDG 12.6 remains low
63% of VNR reports referenced transparency and sustainability reporting
In 2023, 63% of the reports reference transparency and sustainability reporting, a significant
increase from the first years of VNRs in 2016, when this figure stood at 20%. This percentage
dropped to 19% in 2017 before gradually rising to 26% in 2018, 39% in 2019, and 50% in 2020.
Although there was a slight decline to 45% in 2021, the number increased again to 55% in 2022.
This upward trend indicates growing recognition of the importance of sustainability reporting, yet
the figures could be higher, especially given the rise in mandatory reporting. The growth ofsustainability reporting by companies is highlighted by KPMG’s bi-annual survey of sustainability
reporting, which shows an increase from 64% of the N100 companies reporting in 2012 to 79% in
2022.2This growth is also reflected in the number of policies on sustainability disclosure. The Carrots &Sticks 2023 report indicates there are over 1000 disclosure policies worldwide from 110 countries,
demonstrating the proliferation of sustainability disclosure regulations, as noted in the figure below.

2

KPMG, ‘Big shifts, small steps’, Survey of Sustainability Reporting 2022. Retrieved from:https://kpmg.com/xx/en/home/insights/2022/09/survey-of-sustainability-reporting-2022.html

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The increasing prevalence of both voluntary and mandatory reporting underscores thatsustainability reporting is becoming more central to companies' and policymakers' sustainability
strategies. However, with the 2030 Agenda at its halfway point in 2023, a 63% reporting rate
indicates there is significant room for improvement, compared to other data points in this VNR
analysis.

Despite 63% of reports referencing transparency andsustainability reporting, only 30% of reports in 2023
explicitly referenced SDG target 12.6, the only one
explicitly referring to sustainability reporting andencouraging companies to integrate sustainability
information into their reporting cycle. This is a notable
increase from 7% in 2020, but still highlights significant
challenges at different levels. Many countries reference sustainability reporting and transparency
but omit any mention of 12.6. For example, in Qatar's 2023 VNR, sustainability reporting wasreferenced by providing progress on SDG 13 (Climate Action).
The gap between overall references to sustainability reporting and transparency and specificmentions of SDG 12.6 indicates a need for deeper analysis and targeted actions. Understanding
countries' challenges in reporting on SDG 12.6 is essential to developing targeted policy
recommendations and support mechanisms to enhance reporting on SDG 12.6.
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Key challenges include:•

The SDG framework, targets, and indicators were developed from a sovereign
perspective, primarily for countries to measure their progress on SDG implementation.
Therefore, there is an insufficient understanding and linkage between SDG targets andindicators used within the private sector. This gap hinders businesses from effectively
integrating SDG-related goals and targets into their operations and reporting.3•

The private sector's contribution to the 17 SDGs relies heavily on voluntary efforts.
Business reporting on the SDGs significantly depends on individual companies’ initiatives
and leadership to measure and disclose their impacts and contributions to sustainable
development.

•

Businesses mostly rely on voluntary standards and frameworks, such as the GRI
Standards, to measure their impact and contributions to sustainable development.

•

There is a lack of standardization in sustainability/SDG reporting, resulting in a significant
lack of comparable data within and across sectors, countries, and regions.

•

There is a lack of accurate, balanced, reliable, consistent, and comparable SDG-related
information, which hinders the ability to measure private sector impact and contribution tosustainable development. This is needed to provide relevant and decision-useful
information for sustainability policymaking and SDG follow-up and progress review
mechanisms.

•

An underutilized consideration of impact reporting by government officials andpolicymakers exists due to a lack of awareness and understanding of how business
reporting on impacts can contribute to national sustainable development plans andprogress. Likewise, businesses may not fully recognize or consider the sustainability
context in which they operate and how they contribute positively or negatively to driving
progress on national and global sustainability and climate goals and targets.

Transparency and sustainability reporting are becoming more integral to SDG implementation andmonitoring. However, to unlock the full potential of sustainability reporting, it is essential that thedata can effectively inform national sustainable development policies and plans as well as SDG
follow-up and review mechanisms. By addressing these challenges, countries can foster reliable
and comparable SDG-related business information that can lead to more effective andcomprehensive tracking and progress of sustainable development efforts.

3

To address the challenges in business SDG reporting, GRI and United Nations Global Compact developed guidance andtools to support businesses with reporting on the SDGs in a comparable and effective way. The Analysis of the Goals andTargets provides an inventory of possible disclosures per SDG at the level of the 169 targets, based on internationallyrecognized frameworks and standards. Any business can use these disclosures to report on their efforts towards achieving
the SDGs, thus enhancing the quality and comparability of SDG reporting across different sectors and regions.

5III. VNRs do not typically reference the sustainability reporting frameworks they
are adopting
The number of VNRs referencing GRI consistently grows
GRI has been referenced in a growing number of country-level reports on SDG progress over theyears.
Since 2016, 17 countries have referenced GRI in their VNRs, showing a steady growth from 2016
to 2023.4 This consistent annual increase features no fluctuations and can be seen as a positive
trend, indicating a growing recognition of the GRI Standards as the leading global framework forsustainability impact reporting. This is also reflected in the global policy landscape, with GRI
references present across all regions, as shown in Carrots & Sticks 2023 report.
The figure below, from the report, shows the growth of GRI references in policy over time. As of
December 2023, there are 512 policies referencing GRI from 92 countries in the Carrots & Sticks
database. This analysis refers to a previous methodology that does not show the 512 policies.
However, we observe that the growth of references to GRI is present across all world regions.

Nevertheless, despite this growth, a significant gap persists between the number of countries
referencing GRI in their sustainability policies and those referencing GRI in their VNRs. This could
be explained by the several challenges faced by countries in preparing their national sustainability
reporting infrastructure leading to:4

Belgium, Bosnia, Colombia, Greece, Honduras, Hungary, Iceland, Indonesia, Ireland, Israel, Peru, Philippines, Poland,
Sri Lanka, UAE, Uruguay, and Zimbabwe.

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Lack of an entity responsible for overseeing sustainability reporting.

•

Limited interagency coordination or poor policy coherence.

•

Lack of technical capacity, systems infrastructure, and capacity building.

•Lack of national infrastructure to produce publicly available and reliable data on
sustainability.

It is essential to bridge this gap and enhance the integration of established sustainability reporting
frameworks and standards into national and global SDG follow-up and review processes. This
would not only enable assessing the private sector's contribution to the SDGs but also enhance
the quality and relevance of VNRs to ensure that the private sector's impact at the jurisdictional
level is transparently and accurately reflected in national sustainability strategies.

There is a disconnect between VNRs and sustainability reporting policy
With over 1,000 disclosure policies from 110 countries, of which 92 of those countries reference
GRI, it is clear that policymakers recognize the value of adopting the GRI Standards in theirsustainable development policies.
Despite the widespread referencing of GRI in national policies, only 17 countries have referenced
GRI in their VNRs since 2016.5 For instance, out of the Member States presenting the VNRs in
2023, 18 explicitly mention the GRI Standards in ESG/sustainability policies for public or listedcompanies or banks.6 However, despite this broad policy adoption, only four countries havereferenced GRI in their 2023 VNRs.7
Many other jurisdictions have mandatory reporting requirements that include the GRI Standards asa means of complying with these reporting requirements. Examples include Taiwan, thePhilippines, Singapore, Hong Kong, and Indonesia. In Europe, GRI has been co-constructor of theEuropean Sustainability Reporting Standards (ESRS), and achieved the highest possible level ofinteroperability between the GRI Standards and the impact side of the ESRS. The worldwide
support by policymakers underscores the recognized value of GRI in enhancing transparency andaccountability for sustainable development.
The value of the GRI Standards in advancing the sustainable development agenda is also evident
when looking at reporting rates. The GRI Standards are the world’s most widely used sustainability
standards, utilized by 78% of the world’s largest 250 companies and 86% of the world’s largest
banks. These figures highlight the critical role GRI plays in supporting the alignment of5

Belgium, Bosnia and Herzegovina, Colombia, Greece, Honduras, Hungary, Iceland, Indonesia, Ireland, Israel, Peru,
Philippines, Poland, Sri Lanka, United Arab Emirates, Uruguay, Zimbabwe.
6
Bahrain, Belgium, Cambodia, Canada, Chile, Croatia, France, Iceland, Ireland, Kuwait, Maldives, Mongolia, Poland,
Romania, Saudi Arabia, Singapore, Tanzania, Vietnam.
7 Belgium, Bosnia and Herzegovina, Ireland, Poland.

7sustainability reporting practices with global sustainability and climate commitments andagreements.
The existing gap suggests a disconnect between ESG/sustainability policies, global corporate
reporting practices, and VNR processes alongside 2030 Agenda review mechanisms. This
discrepancy may stem from differences in focus between policy implementation and national
reporting, or from the need for improved alignment and communication between government
agencies involved in sustainability policymaking and those overseeing the VNR process and 2030
Agenda review mechanisms. Additionally, there might be a lack of knowledge and awarenessabout the relevance of referencing established sustainability frameworks and standards, such as
GRI Standards, in national reporting.
Increasing awareness and capacity-building within various government agencies is essential tobridge this gap. Enhancing the understanding of sustainability reporting standards and fostering awhole-of-government approach can ensure more cohesive and comprehensive sustainability
policymaking, implementation and reporting. Addressing these challenges is crucial for countries
to ensure that their VNRs more accurately reflect their sustainability efforts and progress. This
would provide a clearer and more comprehensive picture of their progress towards the SDGs,
including capturing private sector impact.

IV. Monitoring specific SDGs in VNRs does not show a clear pattern
SDG 12 is referenced extensively in policy but neglected in VNRs
SDG 12 (Responsible Consumption and Production) is extensively referenced in global
sustainability policies, but is often neglected in VNRs. This highlights a gap between policy
priorities and national reporting practices.
The SDGs in focus at the 2023 High-Level Political Forum (HLPF) were SDGs 6 (Clean Waterand Sanitation), 7 (Affordable and Clean Energy), 9 (Industry, Innovation, and Infrastructure), and
11 (Sustainable Cities and Communities). Each year, countries focus on specific SDGs, which
influence which ones they report on progress in their VNRs.
Additionally, the availability of data could influence the choices of SDGs for reporting andmonitoring. Countries may prioritize reporting on SDGs for which they have robust data, making it
difficult to draw conclusions on overall progress and identify which SDGs are the highest priority.
The lack of a consistent set of countries reporting each year at the HLPF adds to the challenge ofmonitoring SDG progress, specifically taking stock of private sector impacts. This inconsistency
hinders the comparability across years and understanding of long-term trends.
There is a disconnect between the SDGs assessed in VNRs, those emphasized in global
sustainability policies, and those most reported by the private sector. According to the KPMG
Survey of Sustainability Reporting, the most prominent SDGs in corporate sustainability reports
8are SDG 8 (Decent Work and Economic Growth), SDG 12, and SDG 13 (Climate Action), with
only 10% of companies reporting against all 17 SDGs. The least prioritized by companies are
SDG 2 (Zero Hunger), SDG 14 (Life below water), and SDG 15 (Life on Land).
Regarding the most and least prioritized SDGs in policies, Carrots & Sticks' 2023 report indicatesthat certain SDGs tend to dominate specific mentions in sustainability policies. SDG 8 receives
the most explicit mentions, followed by SDG 12, SDG 3 (Good Health and Well-Being), and SDG
13. Conversely, SDG 9 (Industry Innovation and Infrastructure), SDG 10 (Reduced Inequalities),and SDG 14 (Life Below Water) have the fewest explicit references in global sustainability policy.
The most prominent SDGs appearing in policy vary by region, reflecting differing regional priorities
and challenges. Understanding these regional variations can help tailor strategies to better alignnational SDG progress reporting with both policy and corporate contributions.
This analysis reveals a gap between national priorities, and those of the private sector. While
SDG 12 is prioritized in global sustainability policies and by businesses as reflected in theirsustainability reports, this is not adequately reflected in VNRs and national SDG progress reports.
Addressing these gaps is needed to ensure that VNRs more accurately and comprehensively
reflect their progress towards the SDGs, ultimately leading to more effective and comprehensive
sustainable development efforts

9Moving forward

Current practices in VNRs on
transparency and reporting

Governments increasingly recognize the private
sector's critical role in sustainable development,
evidenced by 93% of VNRs acknowledging this in
2023. Furthermore, 91% of countries involved theprivate sector in VNR development in 2023, and100% of VNRs recognized the importance of
public-private partnerships. This recognition is
being translated into partnerships andcoordination. However, the most significant gap
remains in reporting SDG 12.6 progress, andproviding more detailed information on whichsustainability reporting frameworks are being
adopted.

These examples highlight current practices toenhance transparency and private-sector
reporting at the national level:
Belgium: companies most commonly use the
GRI Standards and the SDGs for reporting, often
combining the two.
Bosnia and Herzegovina: the introduction of the
SDG Business Pioneers Award, which embeds
the GRI Standards in its evaluation criteria, has
led to an increase in sustainability reporting.

Noting the clear gap between ESG andsustainability policies and VNR reports, werecommend that countries strive to report on SDG
12.6. However, as long as sustainability reporting
remains voluntary, countries will struggle tomeasure the number of companies publishingsustainability reports per indicator 12.6.1.

Brunei Darussalam: the Mandatory Reporting
Directive was introduced to improve data quality.
It requires all facilities that emit or remove GHGs
to report their emissions to the government.
Chile: the VNR states that companies surveyedreported undertaking voluntary Human Rights due
diligence processes.

Without exact numbers of companies issuingsustainability reports, an enhanced focus on
mandatory disclosure requirements and theadoption of internationally recognized standards
and frameworks are necessary steps. Providing
guidance and capacity-building to companies onsustainability policy efforts and on reporting will
enable countries to measure SDG 12.6
effectively, fostering sustainable businesspractices and driving greater accountability for
impacts on the SDGs.

Democratic Republic of the Congo: implements
the Extractives Industry Transparency Initiative(EITI) to strengthen transparency and traceabilityof public revenues from the mining sector.
Iceland: the VNR reported a significant increasein the number of companies issuing sustainability
reports, from 52% to 91% between 2020 and
2022.
Romania: created the Romanian Sustainability
Code Platform to facilitate the reporting
processes of companies and increasetransparency by providing access to reports. The
platform provides open data to support investors
in decision-making based on the sustainability
practices of reporting companies.

Another critical consideration is the availability ofdisaggregated data that would enable a moredetailed and accurate picture of theircontributions, facilitating better-informed policy
decisions and more targeted interventions.
Implementing mandatory sustainability reporting
requirements would encourage more consistentmeasurement, reporting, and implementation,enhancing the overall effectiveness of national
SDG monitoring and driving greater progress
toward achieving the Global Goals.

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Recommendations forpolicymakers and UN Member
States4. Ensure robust sustainability disclosure
policies: To foster sustainable businesspractices and compel more effective action
towards sustainable development goals,
member states should adopt robust
sustainability disclosure policies. This will
ensure that businesses are transparent about
their environmental, social, and economic
impacts. Enforcing such policies will not only
promote accountability but also drive
companies to align their operations withnational sustainability and climate goals.
Comprehensive disclosures can provide
stakeholders, including government agencies,
with the necessary insights for enhancing theoverall impact of private sector activities onsustainable development.

1. Encourage private sector involvement:
Member states should maintain or increase
engagement by not only emphasizing theprivate sector’s impact on sustainable
development strategies and implementation
but also demonstrating the value thatreporting brings to managing their operations
and business relationships. Governments
should explicitly recognize the private sector’s
contributions in their VNRs, highlighting
successful partnerships, collaborative efforts,
and impact. This recognition can foster amore participatory approach, ensuring thecontributions of all stakeholders are valued
and leveraged effectively.

5. Support the development of acomprehensive global baseline forcorporate sustainability reporting: Place
impact and financial sustainability reporting on
an equal footing. This approach ensures thatbusinesses provide a holistic overview of theirperformance and impact while enhancingalignment with sustainability and climate goals
and agreements. As a result, member states
can promote transparency and accountability
on sustainable business practices worldwide
while ensuring globally comparable andconsistent data.

2. Strive to provide comprehensive reportingon SDG 12.6: Member states should provide
detailed information on ESG/sustainability
disclosure policies in the absence of an exact
number of companies issuing sustainability
reports, per 12.6.1 indicator. This includes
outlining both voluntary guidelines andmandatory reporting regulations. Thisapproach can enhance sustainability policy
coherence and support the continuous
improvement of sustainability practices within
the private sector.

6. Foster alignment between ESG andsustainability policies with national SDG
reporting: Align disclosure policies byadopting consolidated standards andframeworks. This will help avoid
fragmentation of disclosures and enable
comparability of private sector impacts acrosscountries. By aligning with international
standards, member states ensure coherence
between ESG/sustainability policies andnational SDG monitoring mechanisms,
enabling stakeholders to accurately assess
progress towards sustainable development
goals. This facilitates a more integrated
approach to sustainability reporting,promoting consistent and reliable practices
that support global sustainability efforts.

3. Assess private sector contributions:
Member states need to quantify and evaluate
both the positive and negative impacts andcontributions of the private sector. This
assessment should provide a holistic view ofthe private sector’s role in sustainable
development. Mandating sustainability
reporting using globally accepted,
interoperable standards is crucial. This will
support not only national companies inremaining competitive in global value chains
where the demand for ESG data is growing,
but also ensure meaningful engagement
between the private and public sectors toaddress complex societal challenges.

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7. Report on the adoption of sustainability
reporting frameworks and standards:
Reporting on the use of recognized global
standards and frameworks is crucial for
reliable, consistent, and comparable impact
information. The GRI Standards align withinternational authoritative instruments, suchas the United Nations Guiding Principles(UNGPs) and the OECD Guidelines forMultinational Enterprises (MNEs). The GRI
Standards have also been mapped against
the SDGs, and adopting them into disclosure
policies enables policymakers andstakeholders to understand the private
sector's impact on the SDGs and its
contribution to sustainable development.

Resources

8. Ensure accurate reflection of private
sector impacts in national reporting: Thedata collected, aggregated and reported at
the national level in SDG follow-up and review
process should reflect the private sector’s
contributions to sustainable development.
This is crucial for effectively assessing SDG
implementation and progress. The GRI
Standards provide a robust framework forcompanies to measure and communicate
their impacts on sustainability issues. By
referencing GRI in their VNRs, Member
States emphasize the importance oftransparency and hold companies
accountable for their impacts.

The GRI Standards are a free-public good andavailable in 11 languages.
Integrating the SDGs into corporate reporting:A practical guide: a three-step guide, from GRI
and Un Global Compact, on how to embed theSDGs in existing business and reporting
processes.
Analysis of the goals and targets: an online
database that maps possible disclosures per
SDG, at the level of the 169 targets, based oninternationally recognized frameworks andstandards. This tool helps businesses report theircontributions towards the SDGs by using existingsustainability reporting disclosures andprocesses.

9. Ensure VNRs clearly outline national SDG

priorities: To help businesses understand thesustainability context in which they operate,
VNRs should include available information on
SDG national prioritization and public efforts
to mobilize the private sector, highlighting therelationship between these efforts and private
sector contribution and impact. This way,
VNRs can support a more integrated andcomprehensive assessment of progress
towards the SDGs.

Carrots & Sticks database and 2023 report: theleading online source for sustainability disclosure
policies, withy analysis of over 2,400 policies
worldwide.

GRI would like to thank the Government of
Sweden for their support to this project.

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