The Need for Harmonized ESG Reporting for Financial Entities

The Need for Harmonized ESG Reporting for Financial Entities

The environmental, social, and governance (ESG) reporting landscape for financial entities is being rapidly reshaped. To meet investor needs, financial accounting standards boards are creating new frameworks to develop comprehensive sustainability disclosure standards. However, regulatory requirements are complex and potentially contradictory. There are also mandatory and non-mandatory disclosures. To make ESG reporting more meaningful, steps should be taken to make the data and metrics currently used in such reporting more consistent.“To make ESG reporting part of a clear regulatory framework, the synchronized development of various elements of the ESG disclosure landscape is crucial. This will mitigate the risk of conflicted or inconsistent information being disclosed.” — Associate Research Director George Briford, IDC Financial Services Insights

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