When done well, ESG reporting can help your firm shine and attract the right kind of attention.
Environmental, Social and Governance (ESG) reporting is your way to show investors, consumers, and the markets your dedication to sustainable practices that yield results. While still only a voluntary measure, proper ESG reporting provides additional information about corporate transparency and accountability stakeholders are beginning to demand more and more. However, there are several issues to consider when taking on ESG reporting.
Recently, the SEC proposed rules to enhance and standardize climate-related disclosures for investors to help curb potential misrepresentation among some scrupulous self-reporting corporations. SEC regulations are in the works and access to capital may be seriously restricted if corporations don’t adhere to their standards. To prepare for these regulations before they are completed, review and set guidance in place according to the proposals set forth by the International Sustainability Standards Board (ISSB): S1 and S2.
As the documentation side of an ESG strategy, ESG reporting provides important information for several different reasons.
With transparency comes accountability, a crucial component to showing commitment to standards that are not always easy to maintain. Public companies willing to reveal the steps they’re truthfully taking often goes a long way to opening doors for capital and building real solutions to fix global problems.
Potential investors and financiers will often use ESG reporting to assess risk and determine the direction of future performance. In some instances, capital sources may avoid publicly traded companies with no ESG solutions or reporting due to a lack of visibility into their efforts to meet emerging standards.
Changes in generational demand for companies who adhere to ESG standards will drive the need for better reporting. For instance, Gen Z now have a strong desire to support sustainable retail in an effort to offset climate change that will impact them later in life. A December 2019 consumer spending study found that nearly 62% of Gen Z consumers want to buy from sustainable brands while 76% of Millennials want to work for an employer with a sustainability plan in place.
Once your firm is committed to developing and designing an ESG report, consider these five steps to make the information easily available to interested parties:
When the results are in and you’re ready to share your report, Growth Squad can help create the right look and feel that your hard work deserves. Our expert team of graphic designers, web designers, and developers can turn your rough start into a fine finish. Whether you want a well-designed standalone report or a fluid website design, Growth Squad can help. And when the report is live and online, our experts can help put together a digital marketing strategy to let the world know what you’ve accomplished. Contact us today!
You’ve done the hard work: data collection, checking, re-checking, and checking again. Let us take it from here and give your work the pedestal it deserves.