An ESG report is a document that outlines the environmental, social, and governance (ESG) implications of a company or organization. ESG reporting includes both qualitative and quantitative metrics that are used to assess a company’s performance in relation to ESG risks, opportunities, and strategies.
ESG Reporting Explained
The growing importance of ESG reports is supported by the fact that the investors and other stakeholders are calling on companies to disclose more about their sustainability and environmental, social and governance strategies.
ESG reporting encompasses both qualitative disclosures of topics as well as quantitative metrics used to measure a company’s performance against ESG risks, opportunities, and related strategies.
ESG reporting is an ideal and effective means of enabling companies to answer in a single document a wide variety of questions that stakeholders may raise.
However, creating an ESG report can be challenging, as it must meet the requirements of the reporting methodology and have the right balance of information from the individual agendas. Moreover, the companies need to determine how to communicate relevant information and what ESG information and indicators to report.
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