Commentary: Sustainability reporting is only meaningful if companies are serious about making changes

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Sustainability ข่าว

Corporate Social Responsibility,Companies

If companies release sustainability reports just to meet regulatory requirements, it’s unlikely to motivate improvement internally, say these professors from the University of Victoria and University of Calgary.

There have been growing calls for more corporate disclosure and accountability in the face of income inequality, governance failures and the mismanagement of natural resources. Photos: Shutterstock, LazadaCALGARY, Canada: Companies are facing pressure to become more open about how they do business.

Similarly, the Securities and Exchange Commission in the United States and the state of California have both passed greenhouse gas emissions reporting requirements. More Singapore businesses will have to report sustainability information, starting with listed firms in 2025 For example, by reducing greenhouse gas emissions, companies are likely to produce less waste, use raw materials more efficiently and lower operating costs.

Faber remarks that there must be political will for business practices to change. The recent decision by United Kingdom-based energy company BP toThere’s a saying in business: “What gets measured, gets managed.” The idea is that by collecting, analysing and reporting sustainability information relevant to their business, companies will naturally improve their sustainability performance.

On the other hand, concerns about the trustworthiness of corporate reporting could hinder efforts to direct funds toward addressing social issues. Lululemon is currently under investigation by Canada’s Competition Bureau following complaints about greenwashing.

 

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