What is Environmental, Social and Governance Reporting?

Environmental, Social and Governance Reporting; also known as an ESG Report, is a disclosure document in which organizations can disclose their environmental impact, social data, and governance measures, along with their goals and framework to obtain a more sustainable future.

ESG reporting helps organizations to measure their environmental impact, identify social issues and the risks they may face while identifying prevention strategies and opportunities that sustainability initiatives can provide. The reports also help in identifying gaps in the organization.

Engagement of all organizational stakeholders throughout the process helps to create a culture of sustainability that galvanizes organizations to outperform and outpace competitors and set them apart as industry trail blazers and leaders. Organizations with clear sustainable efforts and goals that have been benchmarked through continuous reporting attract better stakeholder engagement across the board; from investors to employees to clientele. Sustainability is the business of the future. Organizations that ignore that do so at their own peril.

It is worth noting that in Canada certain federally regulated business will be required to begin some form of ESG reporting in 2024.