Environmental, Social and Governance Reporting
Supporting informed decisions
Today, sustainability reporting remains largely voluntary in most areas although there is increasing pressure for more depth and accuracy in the way it is reported. Sustainability information, particularly reports on a company’s environmental, social and governance (ESG) activities, is achieving a higher profile, drawing attention from various regulatory bodies. As with reliable financial reporting, there are many possible benefits for a company that implements assurance processes and reporting on sustainability activities. In addition, through a reliable sustainability reporting process and seeking assurance on the same, management demonstrates its desire to deliver accurate and useful information to its various stakeholders. Therefore, it is important that companies’ reporting on their ESG efforts become more uniform and reliable.
“ESG reporting: Supporting informed decisions,” discusses the issues surrounding current sustainability reporting practices, the need for greater accuracy in reporting, and the benefits of effective reporting. With consumers, investors, and employees increasingly making economic decisions about companies based in part on sustainability alignment and performance, this article points out why a formal approach to sustainability reporting is the need of the hour.