Why Should My Company Care about ESG Reporting?

Why Should My Company Care about ESG Reporting?

Environmental, social and governance concerns — ESG — have been influencing the investing world, with trillions of dollars already committed to “impact investing.”  The current landscape for ESG reporting has become more difficult to navigate as numerous companies have adopted environmental and sustainability disclosure frameworks.

What’s Inside

This article chronicles the development of ESG reporting and lists examples of common content. It covers:

1. The PRI Six Principles of Responsible Investing
2. The United Nations Global Compact’s 10 Principles
3. Examples of ESG Issues

Why It Matters

Public companies in the U.S. should expect increasing pressure to publish ESG data, whether that pressure comes from investors or from regulators. Easing into ESG reporting before it is required will arm companies with data for activist investors and equip them to satisfy future regulatory requirements if — or when —they are instituted.