ESG promotes multi-stakeholder cooperation in addressing global challenges by encouraging investment in sustainable development. It drives innovation and creates opportunities that generate long-term sustainable value for the future of the global economy. ESG has become revenue critical as investors and stakeholders require businesses to disclose how environmental, social, and governance issues - including risks and opportunities - can impact an organisation's long-term performance.
ESG is quickly becoming a key part of companies' overall business strategy and can add significant value, such as;
- Improving operational efficiency, by reducing costs and waste
- Increasing competitive advantage
- Building long-term business viability
- Protecting and building upon brand reputation
- Responding to regulatory constraints and opportunities
What are ESG disclosures?
ESG disclosures are reports that provide environmental, social and corporate governance data to key stakeholders. The purpose of the disclosure is to give insight into a company's ESG activities through a consistent and clear reporting structure. ESG disclosures increase transparency around company strategy and progress toward targets. They also offer a framework for action for businesses, which helps build a robust ESG strategy and drive continuous improvement.