Why does your company need investment-grade ESG reporting?
Investors are seeking out relevant ESG information as part of their investment decision-making process. In addition to investors, many government and regulatory bodies around the world are beginning to require this type of reporting, including the Securities and Exchange Commission (SEC) with the move to mandate climate-related, cybersecurity, and human capital management disclosures.
For many companies, the need to comply with evolving regulatory guidelines and mandates is impetus enough for enhancing ESG reporting capabilities. However, compelling reasons for reporting in the 10-K and proxy go well beyond compliance. Over the years, these documents have evolved into integral tools for investor communications. Investors go to these documents for material information about the company that is updated annually. And now, ESG is a part of that material information they are seeking to evaluate their investment decisions.
The 10-K and proxy are now viewed less as a reporting chore and more as a valuable opportunity for sharing the company’s commitment to a diverse set of ESG principles that enable the company to better navigate challenges and deliver long-term value. In many cases, these are the very same principles to which trillions in capital are pledged and with which large institutional funds must align their votes in order to honor their own environmental and social commitments.