Demonstrative sustainability, which can be easily tracked and assessed for clarity, is key for the alignment of business success and ESG initiatives.
GlobalData Thematic Intelligence, Verdict.co.uk, May 10, 2024
Sustainability reporting standards help set the strategic imperatives surrounding ESG that companies must follow.
Initiatives surrounding sustainability reporting must continue to evolve to holistically encompass the sustainability of a company, no matter the industry or sector.
On Tuesday, April 23, 2024, the International Sustainability Standards Board (ISSB) announced that it was researching disclosure standards concerning the opportunities and risks relating to biodiversity, ecosystems, ecosystem services, and human capital.
The research is designed to enhance more specific disclosures relating to a company’s credentials in these factors, thus providing investors and the public with better information on how companies approach and act on these values. Given the less-than-ideal ‘connection’ between ESG and the anti-woke movement globally, increasingly extensive sustainability reporting is in a difficult position.
In 2023 there was a significant increase in ESG pushback in the US, with several states rejecting management of state retirement assets from financial service providers with notable ESG considerations, including BlackRock and Vanguard.
In October 2023, the European Parliament fortunately rejected a proposal to scrap the European Sustainability Reporting Standards (ESRS). Circumvention, avoidance, and absent data quality are all strategies companies have deployed to minimise the extent to which they publish data relating to the sustainability of their operations. By weakening political commitments and undermining reporting standards relating to ESG, companies are also able to reduce commitments to sustainability.
Sustainability reporting can be ‘choosey’
Picking the right standard can be difficult and many companies use this choice to obscure or highlight poor or positive performances in ESG factors. To access the full article, click here.
To learn more about Onepak and our commitment to the circular global economy, visit our sustainability page.
