As the ESG ecosystem evolves, so do investor expectations and regulated reporting requirements. Accordingly, companies must adapt their ESG reporting to align with frameworks and standards to meet investors’ continuing stewardship expectations and what is required to report.
Among the top five ESG reporting frameworks and standards, investors are most focused on those set forth by ISSB and TCFD. The IFRS Foundation, the umbrella organization under which ISSB and TCFD sit, noted that 64 jurisdictions have agreed to advance the ISSB standards.
According to TCFD’s, more than 4,900 companies support TCFD across 13 jurisdictions. Numerous industry-led initiatives have also driven support for and implementation of the TCFD, among them Climate Action 100+ (a committee of global investors focused on assessing the performance of the world’s largest greenhouse gas emitters).
Due to this heightened focus on global climate change, investors and regulators are also increasingly mandating inclusion of TCFD’s climate reporting disclosures. For example, BlackRock, StateStreet, and Vanguard expect their portfolio companies to provide disclosures aligned with the TCFD framework. And the SEC final climate rule is informed by the TCFD framework as well. On a global level, the G-7, which consists of Canada, France, Germany, Italy, Japan, the UK and the U.S., has called to make climate-reporting mandatory.
Four tips for navigating ESG reporting
ESG has become a high profile issue for most issuers to consider. It’s important that your reporting provides investors, proxy advisory firms and regulators the information they need to understand your approach. Here are four practices to navigate ESG reporting landscape.
1. Take the temperature of your internal team
Find out what internal stakeholders think about your ESG strategy and progress, and gain insights that will inform your company’s reporting strategy. Aligning critical stakeholders is critical in the current ESG environment.
2. Tailor your content to market expectations
When it comes to ESG reporting, a lack of understanding in what your investors and customers expect risks misaligning reporting with what could drive business. Georgeson will help you align your reporting content and format to your critical market partners, so they can assess your information easily, lowering the margin for misunderstanding or error.
3. Understand how your investors’ are changing their expectations
Knowing what information your investors are consuming will help make communications more effective and save you time. Georgeson leverages proprietary databases built on the investor expertise that comes from managing hundreds of annual meeting solicitations and engagements each year to ensure you know exactly what your top investors want to know.
4. Effective project management and design
Whether you lack the in-house resources or need to take something off your plate, Georgeson can help manage your report production and design on top of our investor-focused ESG advisory services.
Navigating the reporting landscape is vital
Georgeson provides the insight companies need to effectively decide what to communicate on ESG. We identify the standards and frameworks relevant to your company based on an analysis of your specific investors, with a focus on the information most significant to your investors and other key stakeholders, and develop impactful, effective ESG disclosures.
Whether you are new to reporting and trying to establish an initial plan, or need to improve existing disclosures, Georgeson will develop a tailored reporting strategy, keeping your company's most significant investors and customers top of mind. With a variety of format options – website disclosures, integrated, stand-alone, or mandated reports – and uncertainty about what to include or exclude, Georgeson will help you effectively communicate your successes.
No matter what stage in your journey, Georgeson will help you conquer your ESG challenges.
Our advisory services help you understand your own, unique ESG landscape, advance your practices and communicate with investors effectively.