Environmental, social, and governance (ESG) reporting
Our ESG and Sustainability consulting services help public and private sector clients achieve long-term value in their sustainable development
We provide sustainability consulting services with a talented team of ESG accountants, auditors, financial analysts, specialists, writers and educators who are dedicated to solving our clients' most challenging ESG needs.
Expectations of investor groups around the world now include environmental, social, and governance (ESG) reporting. The pressure for organizations to provide more ESG reporting continues to grow, and there are more calls for the underlying data in these reports to be scrutinized. This presents an opportunity for managment to address a key risk area that is increasingly on the board's radar.
A recent Forbes article included these insights from Tim Mohin, chief executive of the Global Reporting Index: "In the past decade there has been a tremendous upswing in interest coming from the financial sector. With over 90% of the largest companies now filing sustainability reports (85% of the S&P 500), the data is plentiful. But that is not new. What is new is the interest in using the information for investment decisions. A recent study from Oxford University found that more than 80% of mainstream investors now consider 'ESG' — environmental, social, and governance — information when making investment decisions. And the numbers are compelling — globally, there are now $22.89 trillion of assets being professionally managed under responsible investment strategies, an increase of 25% since 2014. This number is so large it needs context — it exceeds the gross domestic product of the entire U.S. economy."
The growth of environmental, social, and governance (ESG) awareness increasingly influences organizational decision making. We help establish strategies to address long-term sustainability issues. There are significant reputational and financial consequences for organizations whose ESG reporting is incomplete, inaccurate or unreliable. IaS can play a significant role in preventing such undesirable scenarios.
ESG covers three broad categories:
Environmental – risks and opportunities around greenhouse gas emissions, water usage, and waste and pollution. This category focuses on both the outputs (what and how much the organization produces) as well as the inputs (the sustainability of the resources the organization needs to feed its processes). For example, a beverage producer may be concerned with sufficient, long-term availability of fresh water while also being aware of any environmentally undesirable byproducts of its production processes.
Social – risks and opportunities around employee relations, diversity, health and safety, and community support. Are employees, including those working for third parties, treated fairly? Are they paid fair wages? Are work conditions safe and free of unnecessary hazards? How does the organization impact and/or support the local community?
Governance — risks and opportunities around shareholder rights, board diversity, ethical decision-making, and deterring corruption and bribery. More and more, activist investors are looking for organizations that make money while maintaining transparency and high ethical standards. Global organizations such as the United Nations (UN) and the Organisation for Economic Cooperation and Development are particularly focused on mitigating corruption and bribery around the world.
Corporate executives and investors: Investors need to understand a company’s long-term value creation plan and receive credible, relevant information to support long-term investment decisions. But many corporates, even when they have a goods business model and robust processes to manage ESG risk, are not giving investors the right information in the right format.
Board directors: ESG issues continue to be a priority for shareholders and therefore it is important for the Board. Investors now demand that companies to build ESG risk managment into their strategic development.
IaS ESG Data Analytics & Reporting Build sustainability into your investment strategy with our environmental, social, and governance ESG data services vice