Companies’ and organizations’ activities are no longer viewed through a financial lens only.
Financial reporting only covers approximately 20% of the value of a company.
Non-financial reporting is not up to the standard that financial reporting has attained with IFRS adoption and assurance thereof.
The quality of ESG reporting needs to be of the same quality and rigor of preparation, and on an equal footing as financial reporting, with the same level of scrutiny.
The UN Sustainability Development Goals (SDGs) need to be embedded in the company’s / organization’s business model and sustainability strategy.
It is imperative to show the impacts of ‘E’, ‘S’ and ‘G’ in the financial condition, operating performance, and risk profile of a company / organization.
Both the positive and negative aspects of the ‘triple dimensions’ – economy, society, and environment – with a strategic intent to enhance the positives and mitigate the negatives, need to be reported on.
ESG is a key acronym that needs to be authentically followed, and not be used as a market exploitation exercise.
Time is a limiting factor and is ‘not on our side’!
