ESG Reporting

What is ESG

"ESG reporting" is the practise of reporting a company's performance on environmental, social, and governance (ESG) issues.

Investors, clients, and other stakeholders these days show a greater interest in a company's social and environmental impact as well as its governance practises, which has increased the importance of ESG reporting.

Here are some key aspects of ESG reporting:

• Environmental reporting:

Reports on the company's greenhouse gas emissions, energy use, water use, waste production, and other environmental impacts are included in this category. Information regarding a company's environmental management systems, environmental policies, and environmental performance goals may also be included in environmental reporting.

• Social reporting:

Reporting on a company's social impact, such as its labour practises, human rights policy, community involvement, and product safety, is referred to as social reporting. A company's diversity and inclusion policies, employee turnover rates, and staff training and development programmes may all be covered in social reporting.

• Governance reporting:

Reporting on governance includes information on a company's board composition, executive remuneration plans, and shareholder engagement procedures. Information on a company's risk management procedures, moral business conduct, and adherence to pertinent laws and regulations may also be included in governance reporting.

Depending on the legislative environment in a particular nation or sector, ESG reporting may be required or optional. Even in situations when ESG reporting is not required, many businesses still opt to do so as a method to show their dedication to sustainability and social responsibility and to foster trust with stakeholders.

ESG reporting frameworks and standards have been developed by numerous organizations, including non-governmental organizations (NGOs) and industry associations, to help firms with their reporting. The Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD) are a few of the most well-known ESG reporting frameworks.