Corporate reporting goes green
[Re: Government to force big business to reveal green credentials, 18th October]
The Chancellor has set out new standards for reporting to keep companies accountable for their environmental claims and impact. That some companies, investment products and pension funds will be required to disclose their environmental impact is hardly surprising – it has been the direction of travel for some time.
The demand for hard data around sustainability efforts and Environmental, social and corporate governance (ESG) is vital to back up a company’s impact claims and avoid being seen as greenwashing.
But for those unfamiliar with reporting, it can be an overwhelming process to navigate. Especially for companies without the comfortable mechanisms of corporate culture.
The first hurdle is identifying a framework, from the numerous options on offer, to identify which best suits their needs.
Once a business has committed to a framework, it must identify the specific areas it will begin reporting on.
The reality is that companies unfamiliar with reporting should not try to cover everything at once. It is better to have a narrow set of high-quality metrics than a range of data points that provide limited insight.
Establishing what stakeholders, employees, and investors value as well as what other businesses in the sector are reporting on is the best step to responding to this growing expectation from the government.
Jessica Camus