Embracing environmental, social and governance (ESG) for a sustainable future

ESG reporting

From reducing an organization’s carbon footprint, to committing to diversity and inclusion in the workforce and increasing transparency, investment into and reporting on ESG criteria has gained prominence as a measure of an organization’s ability to manage risk and boost value.

What’s driving ESG

Find out the factors pushing ESG to the forefront of public demand.

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ESG drivers

There are a growing number of drivers pushing companies to strengthen ESG performance. ESG today adopts a more robust approach than the historic use as a marketing tool, which enabled corporate inaction through the making of largely symbolic gestures.

• Securities commissions are studying minimum thresholds for mandatory integrated reporting.
• Accounting standard-setting bodies are developing international corporate reporting requirements on sustainability issues.
• Governments are weighing in on desired disclosures; the United Kingdom is the first to mandate climate-related financial disclosures across the entire economy by 2025.
• More investors are using ESG information to inform their decisions.
• Regulators are beginning to embed sustainability measures into decisions, rate structures and new capital-intensive infrastructure projects. As corporate ESG integration upsurges, the risks for less ESG-mature businesses grow.

Value of ESG Reporting

Financial reporting captures only a portion of a company’s value creation potential and organizational risks. ESG reporting is critical to communicate the urgency your organization places on sustainability, as well as quantification and validation of your sustainability efforts. Well formed ESG reports deliver:

• Integrated reporting by providing a fuller picture of your value creation potential and enterprise risk landscape.
• Commitment to driving sustainability and competitive advantage among dimensions of cost leadership, product / service differentiation, and intellectual capital development.
• Disclosure of intangible yet financially material factors such as strategy, innovation, capacity, reputation management, commercial risk mitigation and resource efficiency.
• Enhanced performance by strategically embedding certain risks, uncertainties, challenges and trends that may affect financial performance and long-term sustainability.