Voluntary environmental, social and corporate governance (ESG) reporting
Produced in partnership with CLT Envirolaw

The following Environment practice note produced in partnership with CLT Envirolaw provides comprehensive and up to date legal information covering:

  • Voluntary environmental, social and corporate governance (ESG) reporting
  • Trend towards environmental, social and corporate governance (ESG) reporting
  • EU Corporate Responsibility policy
  • UK Corporate Responsibility policy
  • ESG reporting schemes and initiatives
  • GRI Sustainability Reporting Standards
  • IIRC Integrated reporting framework
  • OECD guidelines
  • CFA Institute standards
  • International Sustainability Standards Board
  • More...

Voluntary environmental, social and corporate governance (ESG) reporting

Trend towards environmental, social and corporate governance (ESG) reporting

Heightened emphasis on transparency and accountability through corporate governance and disclosure has renewed the focus on the ‘triple bottom line’—environmental, social and economic impacts. Environmental, social and corporate governance (ESG) reporting generally measures the sustainability and ethical performance of a company.

There is increasing interest in the ESG performance of companies by various stakeholders. A range of mechanisms exist to shape corporate social responsibility (CSR) and foment voluntary reporting by companies on their ESG performance. Adhering to one such framework heightens credibility, and a proactive approach to sustainability presents opportunities while ensuring a company’s preparedness to embrace evolving legal requirements.

Stock exchanges are also encouraging voluntary disclosure on ESG. At the RIO+20 conference, a group of stock exchanges held forums to explore how exchanges can work together with investors, regulators and companies to enhance corporate transparency and ESG performance and encourage responsible long-term approaches to investment. Some stock exchanges, such as the Johannesburg Stock Exchange and Singapore Exchange SGX, are already requiring listed companies to provide disclosures on sustainability issues.

The London Stock Exchange Group has issued guidance for issuers on the integration of ESG into investor reporting and communication. The aim of the guidance is to:

  1. make companies aware of the importance of providing quality ESG information

  2. stimulate interest in the

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