Small companies are breaking under the burdens of mandatory sustainability reporting

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Small market-cap companies across the country are going from treading water to sinking under ever-increasing reporting requirements for publicly-traded companies

Andrew McLaughlin is vice-president, legal affairs, and general counsel of Major Drilling Group International Inc. He chaired the national ESG SummitIt was a blunt comment that cut through the conference room like a knife.

Now, more than seven months later, his bleak observation is more poignant than ever. I’m a senior executive at a small company that’s just gone through another annual wave of report preparation. It’s admittedly ever-more challenging to keep the reporting ship afloat. Here’s a brief snapshot of what this specifically entails for us:

We’ve also noticed there’s real value in having those leading the reporting effort also being deeply involved in implementation, as they can help bridge the gap between operations on the ground and disclosures to the markets. However, this means facing the usual trade-off between reporting versus doing – i.e. diverting a lot of time, money and energy toward reporting that could have gone to helping carry out projects that make a positive sustainability difference on the ground.

 

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