ESG stands for Environmental, Social, and Governance, and ESG reporting is defined as “the disclosure of environmental, social and corporate governance data. As with all disclosures, its purpose is to shed light on a company’s ESG activities while improving investor transparency and inspiring other organizations to do the same”.
ESG reports commonly cover each topic area (environmental, social and labor, and governance), and for each, include information on:
- Assessed risks
- Actual impacts
- Quantitative and qualitative assessment of the company’s ESG activities (for instance, any policies, programs or actions that you have implemented to improve your impacts).
There are many different ESG reporting frameworks in use, but the most common frameworks are the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), the Sustainability Accounting Standards Board (SASB), and the United Nations (U.N.) Sustainable Development Goals (SDGs).
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