ESG Reporting: Beyond Compliance

Introduction

ESG reporting is simply the disclosure of information about operations that relate to environmental, social and governance areas of a business. The aim is to provide stakeholders with valuable insights that can inform decision-making, highlight potential opportunities as well as risks that may affect the valuation of a business. ESG reporting has become important for organizations for several reasons, ranging from the need for transparency, investor demand, compliance, risk management, innovation, and goal tracking. However, many organisations see it as a box-ticking exercise rather than a means to address material risks and meet stakeholder expectations. This approach undermines the importance of the incorporation of ESG principles in corporate strategy, operations and culture and may pose a threat to business sustainability.