ESG reporting is the disclosure of environmental, social and corporate governance data. As with all disclosures, its purpose is to shed light on a company’s ESG activities while improving investor transparency and inspiring other organizations to do the same.
ESG reporting is all about disclosing information covering an organization’s operations and risks in three areas:
- Environmental stewardship;
- Social responsibility; and
- Corporate governance.
Consumers look to ESG reports to find out if they are supporting a Company whose values align with theirs.
ESG reporting process is similar to corporate financial reporting, except ESG reporting discloses qualitative ESG metrics and information instead of accounting metrics. These include:
- Environmental metrics such as waste produced and resource usage;
- Social metrics such as gender-pay ratio; and
- Community investment.
