Sustainability reporting is shaped by numerous initiatives and frameworks, such as the Global Reporting Initiative (GRI) G4 Guidelines or the Integrated Reporting Framework of the International Integrated Reporting Council (IIRC).
Sustainability performance and placement in SRI ratings is increasingly a decisive factor in terms of demand for corporate securities on the capital markets and thus an important aspect in enhancing the reputation of companies.
What are the challenges in implementing reporting?
Targeted and successful sustainability reporting involves identifying and presenting the key issues that are of concern to the company and its stakeholders. Successes achieved as well as mistakes and failures should be presented openly and in a balanced way. Furthermore, stakeholders demand increased transparency on the corporate impacts along the value chain. Recording and, in particular, quantifying these impacts is a major challenge for companies.
Does sustainability matter on the capital market?
Various developments suggest that environmental, social and governance (ESG) claims have become very important for players in the capital markets. This can be observed both in the area of responsible investments and for mainstream investors. While some investors also want to contribute to sustainable development through their investment, mainstream investors consider ESG performance as an indicator of the management quality of the investment. The initiative of the Responsible Investment Principles of the United Nations (UN PRI) or the fact that important analysts such as Bloomberg, MSCI or Thomson Reuters all offer an ESG data service can be cited here as examples. The Carbon Disclosure Project (CDP) also requests information on climate change on behalf of financial institutions.
Partner, EMA & German Head of ESG and Automotive
KPMG AG Wirtschaftsprüfungsgesellschaft
We are happy to support you in the
- Analysis of key sustainability aspects for reporting and the preparation of sustainability reports and information
- Developing and implementing robust systems, quality assurance processes, standards and guidelines for reporting
- Linking sustainability reporting with financial reporting
- Further development of reporting towards integrated reporting (e.g. according to the IIRC framework)
- Selection of suitable software solutions
- Identification of relevant ratings and company-specific prioritisation
- Support in meeting the requirements of various ratings and evaluation of the results (e.g. Dow Jones Sustainability Index or Carbon Disclosure Project)
KPMG has been familiar with advising on all aspects of sustainability reporting and ratings for many years. Our employees have proven expertise in various national and international sustainability initiatives and organisations. KPMG in Germany is integrated into the worldwide network of KPMG's Global Climate Change & Sustainability Services and supports you worldwide.
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