Environmental, Social and Governance: Factors that Disconnect
While the number of companies issuing sustainability reports is increasing, many of them are not conveying the information in a way such that investors can easily compare the reports across businesses.
Most corporations use Global Reporting Initiative (GRI) reporting indicators while investors prefer Sustainability Accounting Standards Board (SASB) reporting processes. The variance between the two reporting standards is significant, but can be managed. It will be necessary to bridge the reporting gap so that both corporations and investors can realize the value that ESG reporting can add to the triple bottom line.
Source: PwC, ESG; Governance & Accountability Institute, Inc