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When it comes to sustainability reporting, it depends on how serious companies are about making change

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Companies are facing pressure to become more open about how they do business. With income inequality, governance failures and the mismanagement of natural resource capital threatening both society and the environment, there are growing calls for more corporate disclosure and accountability.

When it comes to sustainability reporting, it depends on how serious companies are about making change

While the scope of sustainability reporting requirements is growing around the world, some companies choose to report voluntarily, using frameworks and. Whether or not it causes business practices to become more environmentally friendly and socially conscious remains a matter of debate.But if companies release sustainability reports just to meet the needs of external stakeholders, including regulators, it's unlikely to motivate internal changes to business operations.

"Just as an accounting standard cannot get a company to increase its profit by 10%, a sustainability disclosure standard … cannot get it to reduce its emissions by 10%.""what gets measured, gets managedSo, where does this leave us? If you are an investor, it's likely good news for you.

 

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