Report: Corporate Reporting Evolving Fast but ESG Gaps Exist
Corporate reporting is changing fast from a traditional one to include environment, social and governance (ESG) issues but a disconnect exists between companies and investors on ESG reporting, EY said, quoting a survey of over 1,000 finance leaders, including 40 from India.
The survey showed that 80% of finance leaders surveyed in India and 74% globally felt the transition from traditional financial reporting to an enhanced corporate reporting model encompassing financials and ESG reporting has accelerated.
However, there is still scope for improvement, said the 2021 EY global corporate reporting survey.
In the post-pandemic world, it is important that the approach to communicating a company’s ESG performance should evolve quickly to earn the trust of stakeholders, the report said. Investors and other stakeholders are seeking consistent and credible ESG disclosures on the material issues that help them understand how a company performs, makes decisions and creates long-term value and sustainable growth, it said.