The demand for investor-grade data around environmental, social and governance (ESG) issues has been building for years, and it’s not slowing down any time soon. A final ruling from the US Securities and Exchange Commission (SEC) on climate-related disclosures is currently pending, but it’s not the only game in town. There are many factors in the US and internationally that are driving public and private companies to prioritise ESG value-based reporting and compliance efforts today. Here are seven to consider:
You’re doing business in the European Union
Or only in Germany
Or even in select US cities
You plan to go public
Your customers and suppliers demand it
As do your investors with proxy votes
And if none of the above applies … ESG is ultimately a competitive advantage
1 KPMG LLP, “Get Ready for European Sustainability Reporting Standards,” November 2022, https://kpmg.com/xx/en/home/insights/2022/05/european-sustainability-reporting-standards-eu-esrs.html.
2 KPMG LLP, “US Company Impact of EU ESG Reporting Requirements,” December 2022, https://frv.kpmg.us/reference-library/2022/european-esg-reporting-directive.html.
3 KPMG LLP, “Webcast: Impact of EU ESG Reporting Standards on US Companies,” October 17, 2022, https://frv.kpmg.us/cpe/upcoming-archived-cpe-webcasts/2022/us-impact-of-eu-sustainability-reporting.html.
4 NYC Sustainable Buildings, “Local Law 97,” accessed February 13, 2023, https://www.nyc.gov/site/sustainablebuildings/ll97/local-law-97.page.
5 Community Development Department, “Building Energy Use Disclosure Ordinance,” accessed February 13, 2023, https://www.cambridgema.gov/CDD/zoninganddevelopment/sustainabledevelopment/buildingenergydisclosureordinance.
6 KPMG LLP, “ESG as an Asset: Private Equity Considerations from the SEC’s Climate Proposal,” September 2022, https://info.kpmg.us/news-perspectives/advancing-the-profession/private-equity-considerations-sec-climate-proposal.html.
7 Microsoft Corporation, “Supplier Code of Conduct (SCoC) and Training,” accessed February 13, 2023, https://www.microsoft.com/en-us/procurement/supplier-conduct.aspx.
8 Salesforce, “Get to Know Salesforce Supplier Sustainability Commitments,” accessed February 13, 2023, https://trailhead.salesforce.com/content/learn/modules/sustainability-for-salesforce-suppliers/get-to-know-salesforce-supplier-sustainability-commitments.
A version of this article previously appeared in ESG Clarity.
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