ESG refers and addresses a range of issues related to the organisation’s interaction and performance with the environment, society and corporate governance. A consolidated performance reporting identifies both risks and opportunities regarding ESG and serves as a determinant to their long-term commercial success. Over these years, investors are increasingly factoring these indicators as part of their financial investment strategy.
- Sustainable performance of an organisation is no longer being determined only by financial parameters, but on their overall contribution to the society and stakeholders at large.
- This methodology has emerged in succession to the triple bottom line approach and GRI reporting initiatives, giving rise to sustainable investments based on ESG performance outcomes.
Organisations embark on a sustainability reporting process due to:
- To show commitment and to be transparent
- To demonstrate the ability to participate in competitive markets
- To attract sustainable investments based on their matured performance in environmental, social and governance arena
- To plan activities, become more sustainable and position the company
- To comply with regulations