ESG reporting
What does ESG mean?
An ESG (Environmental, Social, Governance) reporting involves the disclosure of data describing a company's impact in three different areas: environment, society, and governance. It provides criteria, especially for investors, to help find companies with values that match their own and to consider not only economic performance, but also environmental, social, and in business management performance in their investment decision.
What does an ESG report contain?
Environmental criteria can include greenhouse gas emissions released into the atmosphere by the company, the amount of waste it produces, conservation of natural resources and treatment of animals, etc.ESG reporting also allows the company to assess any environmental risks and their management.
Social criteria focus on working conditions, such as equal opportunities, occupational health and safety, human rights, social responsibility and supply chain management, etc.
Governance criteria may include: corporate ethics, regulatory compliance, anti-corruption practices, organisational and shareholder structure, etc.
ESG reports are important for understanding a company's complete risk profile, but they can also lead to a better corporate reputation.
How is ESG reporting done?
Companies can voluntarily disclose their ESGperformance (ESG performance) in a variety of ways, including corporate social responsibility (CSR) reports, the companies' own websites, or by providing data and information to international organizations that foster performance reporting and make an assessment of it(ESG rating). Just with reference to these organizations, the most relevant are as follows:
- CDP;
- MSCI, which publishes the MSCI ESG Ratings;
- S&P Global Corporate Sustainability Assessment (CSA);
- Sustainalytics;
- EcoVadis;
- Vigeo Eiris;
- Standard Ethics.
Find out how we can help you achieve ESG goals.
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