How to determine which framework to use for effective ESG reporting
The prevalence of corporate reporting on environmental, social, and governance (ESG) topics has grown substantially over the past nine years. In 2019, 90% of companies in the S&P 500 published some form of sustainability report, up from a mere 20% in 2011. This increase in reporting has largely been driven by expanded focus from the financial community (e.g., equity investors, debt holders/creditors, insurance companies, etc.) on ESG performance data to better understand the risks and opportunities of specific companies/industries that could impact financial performance. Other stakeholders, such as employees, vendors, and government entities, are also seeking ESG data to evaluate company performance on the topics they view of greatest importance (e.g., diversity of workforce, impact of operations on the local community, etc.).