ESG (Environmental, Social and Governance) reporting is the disclosure of performance in relation to material ESG risks and opportunities, both qualitatively and quantitatively, to explain how these material topics inform a company's strategy and overall performance.
However, while inroads have been made, there’s still room to improve as companies struggle to keep up with a growing demand for investor-grade ESG reports. There’s a significant opportunity for executives and boards to improve reporting for the non-financial metrics that ESG covers, closing the gaps, and providing greater confidence with stakeholders in delivering on strategy and ESG commitments.
ESG should be regarded as an opportunity, not a risk; it’s a means for executives and boards to build greater trust with employees, shareholders and communities in which they operate.
As ESG reporting evolves and companies disclose more relating to these issues, organisational ESG metrics will come under increasing scrutiny. Making sure these metrics are prepared with the appropriate rigor for investor use, and can hold up to regulatory scrutiny, will be crucial to future success and growth.
Watch John O'Donoghue and Adam Cunningham, two of our ESG & Climate Risk experts, talk about the renewed, intense focus on the potential impact ESG has on financial reporting.
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Caroline Mara
Partner, Assurance, Sustainability Reporting and Assurance Leader, PwC Australia
John Tomac
Partner, Sustainability Reporting and Assurance, PwC Australia
Tel: +61 282 661 330