Insights from the UN Global Compact’s 2024 CoP Report.

The UN Global Compact’s 2024 Communication on Progress (CoP) Insights Report offers a uniquely detailed look at how nearly 11,000 businesses around the world are measuring and reporting their sustainability commitments. With respondents spanning 149 countries, the report provides a remarkably global perspective on the progress being made by participating businesses in advancing the Ten Principles and Sustainable Development Goals (SDGs).

Of the 10,984 participating organizations, 55% of respondents were from Europe, followed by Latin America and the Caribbean (18%), and Asia and Oceania (15%). North America, Africa, and the Middle East each comprised 5% or less of the total respondents. Roughly 54% of the respondents were small and medium-sized enterprises (SMEs), with large companies (250+ employees) being more prevalent among respondents from North America, Asia, and Oceania. SMEs dominated in Africa and the Middle East. A significant portion, 37% of all respondents, joined the Compact between 2020 and 2023. From the sector perspective, the majority of respondents were from the Industrials (28%), Diversified (17%), and Consumer Discretionary (12%) industries. This diverse dataset highlights the Global Compact’s success in engaging companies beyond the traditional pool of multinationals and the expansive growth in global sustainability engagement.  

Participants in the UN Global Compact, including Invert, commit to upholding the Ten Principles, which cover the Four Pillars of Human Rights, Labor, Environment, and Anti-Corruption. While progress is being made, the report highlights that most commitments have only been applied internally to a company’s own operations. Extending these promises outward, into suppliers and full value chains, remains limited, with just 25–40% of companies having commitments that reach that far; even though supply chains account for ~60% of global emissions and are often hotspots for human rights and corruption risks. Without extending policies to suppliers, the report points out that even the best internal programs risk being dwarfed by unchecked external harms.

Built on the principle that all Four Pillars are interdependent, the UN Global Compact reported that companies selected an average of seven human rights/labour issues and two environmental issues as material to their operations. The most common policy commitments reported by businesses being aligned to safe and healthy working environments (87%), gender equality (78%), energy and resource use (71%), and anti-corruption compliance programs (70%). 

While progress across all Pillars is detailed within the report, advancement against the Environment Pillar revealed some interesting insights and clear patterns of corporate focus:

• Energy and resource use, waste, and climate change saw the highest levels of corporate target-setting.
• The lowest levels of target-setting were in the areas of oceans and biodiversity with 72% and 50% of respondents, respectively, not monitoring these areas at all. However, there were significant regional differences reported against these targets with companies in Asia & Oceania and Africa reporting higher rates of biodiversity target-setting, potentially reflecting regional dependencies on natural resources and ecosystem services. 
• Over half of companies (57%) report company-wide climate resilience measures, but far fewer extend resilience planning to supply chains (29%) and communities (31%). Both are critical gaps given the growing impact of climate disruptions.

The findings suggest that while climate change mitigation has matured into a mainstream corporate priority, other environmental domains – particularly biodiversity – remain under-addressed, despite their clear link to business risk and global sustainability targets.

The UN Global Compact’s 2024 Communication on Progress isn’t just a compliance exercise. It’s a call for accountability, transparency, and continuous improvement. While we have highlighted the Environment pillar in this week’s newsletter, neglecting any of the Four Pillars exposes companies to operational, reputational, and financial risk. A piecemeal approach may satisfy short-term reporting needs, but cannot deliver the transformation needed for long-term resilience. While significant progress is being made, critical gaps remain, especially in extending commitments through value chains and broadening environmental action beyond climate change.

Invert Insights.

💡The report emphasizes that progress against all the Ten Principles and SDGs is critical for a safe and sustainable future. Voluntary frameworks like the CoP play a vital role, especially for SMEs, by providing a structured mechanism for reporting and identifying areas for improvement. Embedding sustainability into business operations, establishing policy commitments, and actively mitigating risks across human rights, labor, environment, and anti-corruption are crucial steps. Companies that prioritize strong performance across all Ten Principles can build credibility, enhance business resilience, and drive innovation.

💡 There’s a clear correlation between a company’s tenure with the UN Global Compact and its level of policy commitment, particularly in labor and environmental areas. This suggests that sustained engagement with the Compact’s resources, peer learning, and expert support contributes to a deeper embedding of sustainability practices and increased ambition over time.

💡 While many companies have policy commitments and risk assessment processes within their own operations and with suppliers, there’s a gap in extending these efforts to the broader value chain. This is particularly critical given that a large percentage of global emissions are generated by supply chains. The report underscores that addressing this gap through initiatives and capacity-building is essential for companies to achieve a truly positive societal impact.