Progress continues on making ESG data more accessible and comparable

Climate Week NYC, an annual charity event focused on global warming, is currently underway. The event typically floods inboxes with business and climate-related initiatives, statements, and reports. However, this year s volume seems less than previous years, potentially reflecting a shift in companies and investors attitudes towards Environmental, Social, and Governance (ESG) issues. Despite the apparent decrease in ESG discussions, particularly in the US, there are still significant developments for Internal Reporting (IR) teams to consider. The IFRS Foundation has released a guide for companies on voluntarily applying International Sustainability Standards Board (ISSB) Standards. The document provides advice on how to start applying these standards and how to communicate the level of adoption to investors. Moreover, global investors, including Norges Bank Investment Management, are advocating for companies to adopt these standards. This highlights the continued push from the investment community for more information on emissions and other environmental areas. Another noteworthy development is the expanded partnership between the disclosure platform CDP and the Net-Zero Data Public Utility (NZDPU). The NZDPU aims to create a free-to-access global repository of corporate emissions data, enabling easier scrutiny of companies net-zero plans. The next phase of collaboration will make core climate data from over 10,000 companies publicly accessible. These announcements signify further progress towards ESG data becoming more available and comparable. Companies that perform well in these metrics should benefit, while those lagging may face increased scrutiny. IR teams should stay informed about these developments and consider how they may impact their organizations. The evolving landscape of ESG data and reporting may influence conversations with investors and shape the focus on specific ESG data points. For more insights and discussions on sustainability and ESG, IR teams can reach out to the provided email address or LinkedIn profile.

Source: irmagazine.com
Published on 2024-09-25