Why are you providing an ESG report?

This group of further questions will help address your motivating factors. While much of this will have already been considered when establishing your objectives, it’s helpful to revisit motivating factors. What caused you to think about ESG reporting? Was it internal factors, external pressure, or something else? What are the risks for not accomplishing the ESG objective? Are there differing opinions within your organization about ESG?

Who is the audience of your ESG report?

Aim to refine the target audience of your ESG reporting efforts to help the right information is reach the right people in the right way. Some additional questions could include the following. Who will be the recipient of the reporting or disclosures? Regulatory agencies, customers, vendors, or staff? What are the most important things to know about the ESG work? Are there other groups asking for the same information that could be included in communications for maximum impact?

How will your organization complete an ESG report?

Considerations in this category drill into the ability of your organization to complete the work. Other questions to ask could include: Who’s already working toward ESG? This should be captured during the ESG scan. Does the team pursuing our ESG reporting initiatives have sufficient expertise, authority, and influence? Are there enough resources to develop an ESG report? In what areas will your organization need third-party resources?

Article

Get started with environmental, social, and governance (ESG) reporting

March 8, 2023 · Authored by Colleen Rozillis, Jessie Lenhardt

On March 6, 2024, the SEC issued a final rule requiring registrants to disclose climate-related information in their registration statements and annual reports. See additional details in the alert, SEC finalizes climate disclosure rule, published March 12, 2024.

Without globally accepted ESG reporting standards, organizations face challenges. Producing ESG reporting that meets the needs of varied audiences and also works toward improved business outcomes can be confusing with assessments, disclosures, and standards constantly evolving as organizations respond to regulatory and public input.

Below is a breakdown on how to get started with ESG reporting and an update on ESG standards and criteria.

What are your objectives for ESG reporting?

Organizations produce ESG reports or disclose specific metrics for many reasons. Clearly stated objectives for ESG reporting can help meet the informational needs of varied audience types. These objectives can focus on a singular requirement or be more comprehensive and include data for an entire ESG reporting program or strategy.

Noting that reporting objectives can evolve over time is also important. As processes for data collection mature and information requirements are refined, continued improvement remains an integral part of the reporting cycle. A multiphase approach to ESG standards can meet both short- and long-term objectives.

Meet a compliance or customer requirement

Public companies or related subsidiaries operating in certain jurisdictions should stay privy to the evolving regulatory environment to comply with emerging requirements.

For example, the U.S. Financial Stability Oversight Council identified climate change as an increasing threat to U.S. financial stability, and