Post by account_disabled on Feb 20, 2024 5:47:02 GMT -5
Although the increasing frequency and severity of extreme weather events demands greater attention to the risks of climate change, including risks to investors, making ESG mandatory is still a contentious business and political battleground, according to Muhammad Asif, associate professor of management sciences at Plymouth State University, who publishes in Corporate Knights .
Disclosures in ESG ( environmental, social and governance ) are companies' reports in terms related to environmental metrics, social issues and corporate governance indicators. And, although there are currently many frameworks and standards for reporting on non-financial dimensions, there is Chile Mobile Number List some resistance or division to ultimately adopt these disclosures.
ESG Disclosure is voluntary…. but this could change
ESG disclosure is largely voluntary in many countries, including the US and Canada. Reporting on a company's carbon footprint, working conditions in its supply chain, and board composition are just a few of the many issues revealed under the ESG landscape.
These disclosures often seek to respond to pressure from investors, customers, employees and other stakeholders, under the belief that public information can foster better performance.
Unfortunately numerous serious cases of social and environmental misconduct show the limits of voluntary disclosures. The key problem with voluntary ESG reporting is the gap between corporate claims and actual practices.
A case in point is the recent case of Deutsche Bank 's offices being raided last May to investigate charges of greenwashing in its asset management unit. The key allegation is that it was misrepresenting financial products as green and sustainable.
Closing the ESG gap
These examples of ESG scandals and misleading claims reveal the continued seriousness of the disconnect between stated and actual performance. When it comes to reporting, companies should be careful to understand and use widely accepted standards and not make inaccurate statements.
To counter these issues, in the particular case of the US, there is a strong push for ESG reporting. And, the SEC is currently working to make disclosure mandatory.
«SEC recently announced that the agency “will propose rules requiring disclosure by publicly traded companies about climate change and associated risks.”»
Miles & Stockbridge
Meanwhile, in the United Kingdom, which has strongly led the zero emissions goal, the presentation of environmental-related reports is already a mandatory requirement, and has even expanded in 2022 to include other sustainability topics, such as human rights, anti-corruption and social issues.
ESG challenges
McKinsey says organizations can save up to 60% on business costs by addressing ESG concerns. However, it must be recognized that although ESG issues can influence a company's finances, that should not be the main motivation for companies.
Disclosures in ESG ( environmental, social and governance ) are companies' reports in terms related to environmental metrics, social issues and corporate governance indicators. And, although there are currently many frameworks and standards for reporting on non-financial dimensions, there is Chile Mobile Number List some resistance or division to ultimately adopt these disclosures.
ESG Disclosure is voluntary…. but this could change
ESG disclosure is largely voluntary in many countries, including the US and Canada. Reporting on a company's carbon footprint, working conditions in its supply chain, and board composition are just a few of the many issues revealed under the ESG landscape.
These disclosures often seek to respond to pressure from investors, customers, employees and other stakeholders, under the belief that public information can foster better performance.
Unfortunately numerous serious cases of social and environmental misconduct show the limits of voluntary disclosures. The key problem with voluntary ESG reporting is the gap between corporate claims and actual practices.
A case in point is the recent case of Deutsche Bank 's offices being raided last May to investigate charges of greenwashing in its asset management unit. The key allegation is that it was misrepresenting financial products as green and sustainable.
Closing the ESG gap
These examples of ESG scandals and misleading claims reveal the continued seriousness of the disconnect between stated and actual performance. When it comes to reporting, companies should be careful to understand and use widely accepted standards and not make inaccurate statements.
To counter these issues, in the particular case of the US, there is a strong push for ESG reporting. And, the SEC is currently working to make disclosure mandatory.
«SEC recently announced that the agency “will propose rules requiring disclosure by publicly traded companies about climate change and associated risks.”»
Miles & Stockbridge
Meanwhile, in the United Kingdom, which has strongly led the zero emissions goal, the presentation of environmental-related reports is already a mandatory requirement, and has even expanded in 2022 to include other sustainability topics, such as human rights, anti-corruption and social issues.
ESG challenges
McKinsey says organizations can save up to 60% on business costs by addressing ESG concerns. However, it must be recognized that although ESG issues can influence a company's finances, that should not be the main motivation for companies.