ESG Reporting Needs a Refresh. Here’s How to Fix It.
By Tensie Whelan
In North America and Europe, there’s a battle regarding sustainability reporting and compliance. Opponents say onerous regulations will reduce profitability, while proponents claim that, left to their own devices, companies will ignore important societal goals such as tackling global warming, water pollution or health and safety issues.
According to our research, both sides are right and wrong. We’ve examined the Sustainability Accounting Standards Board (SASB) standards (part of the International Sustainability Standards Board) and the Corporate Sustainability Reporting Directive (CSRD) to understand whether these standards can drive better societal performance and drive better financial performance.
In general, reporting and compliance regulations aim to ensure that everyone in the business ecosystem plays by the same set of rules and that there’s accountability for how those rules are followed. In the best of worlds, those standards help improve corporate performance on a wide range of issues, from providing credible data to investors to reducing harmful toxic emissions.
Read the full Trellis article.
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Tensie Whelan is a Clinical Professor of Business and Society and Director of the Center for Sustainable Business.