ESG (environmental, social, and governance) reporting is no longer an optional luxury for companies. Nearly half of the companies with material ESG-related controversies experience a financial impact, such as decreased stock price, increased cost of capital, or regulatory fines.
Like these other organizations, you can face these consequences too if you ignore your ESG initiatives.
To solve this, fix the problem at the source. The main causes of ESG neglect are:
๐ข ๐๐ฒ๐น๐ถ๐ฒ๐ณ ๐๐ต๐ฎ๐ ๐๐ฆ๐ ๐ถ๐ ๐๐ผ๐ผ ๐๐ถ๐บ๐ฒ-๐ฐ๐ผ๐ป๐๐๐บ๐ถ๐ป๐ด ๐ผ๐ฟ ๐๐ต๐ฎ๐ ๐๐ต๐ฒ๐ ๐๐ถ๐บ๐ฝ๐น๐ ๐ฑ๐ผ๐ป'๐ ๐ต๐ฎ๐๐ฒ ๐๐ต๐ฒ ๐ฟ๐ฒ๐๐ผ๐๐ฟ๐ฐ๐ฒ๐.
๐ข ๐๐ฎ๐ถ๐น๐๐ฟ๐ฒ ๐๐ผ ๐๐ฒ๐ฒ ๐๐ต๐ฒ ๐ถ๐บ๐บ๐ฒ๐ฑ๐ถ๐ฎ๐๐ฒ ๐ฏ๐ฒ๐ป๐ฒ๐ณ๐ถ๐๐ ๐ฎ๐ป๐ฑ ๐ฝ๐ฟ๐ถ๐ผ๐ฟ๐ถ๐๐ถ๐๐ฒ ๐ผ๐๐ต๐ฒ๐ฟ ๐ถ๐ป๐ถ๐๐ถ๐ฎ๐๐ถ๐๐ฒ๐.
ESG neglect is a risk you can't afford. To avoid financial pain, you must make ESG reporting a priority. This can include hiring a dedicated ESG team, investing in technology and tools to streamline reporting processes, and making sure top leadership is engaged and committed to ESG initiatives. With the right approach, ESG reporting can bring about a brighter financial future for companies, instead of the painful consequences of neglect.
What tips do you have to bolster your ESG reporting capabilities?