𝐄𝐒𝐆 𝐍𝐞𝐠𝐥𝐞𝐜𝐭 𝐄𝐪𝐮𝐚𝐥𝐬 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐚𝐢𝐧: 𝐓𝐡𝐞 𝐒𝐭𝐚𝐫𝐭𝐥𝐢𝐧𝐠 𝐒𝐭𝐚𝐭𝐢𝐬𝐭𝐢𝐜𝐬

ESG (environmental, social, and governance) reporting is no longer an optional luxury for companies. Nearly half of the companies with material ESG-related controversies experience a financial impact, such as decreased stock price, increased cost of capital, or regulatory fines.

Like these other organizations, you can face these consequences too if you ignore your ESG initiatives.

To solve this, fix the problem at the source. The main causes of ESG neglect are:

💢 𝗕𝗲𝗹𝗶𝗲𝗳 𝘁𝗵𝗮𝘁 𝗘𝗦𝗚 𝗶𝘀 𝘁𝗼𝗼 𝘁𝗶𝗺𝗲-𝗰𝗼𝗻𝘀𝘂𝗺𝗶𝗻𝗴 𝗼𝗿 𝘁𝗵𝗮𝘁 𝘁𝗵𝗲𝘆 𝘀𝗶𝗺𝗽𝗹𝘆 𝗱𝗼𝗻'𝘁 𝗵𝗮𝘃𝗲 𝘁𝗵𝗲 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀.

💢 𝗙𝗮𝗶𝗹𝘂𝗿𝗲 𝘁𝗼 𝘀𝗲𝗲 𝘁𝗵𝗲 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝗮𝗻𝗱 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲 𝗼𝘁𝗵𝗲𝗿 𝗶𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲𝘀.

ESG neglect is a risk you can't afford. To avoid financial pain, you must make ESG reporting a priority. This can include hiring a dedicated ESG team, investing in technology and tools to streamline reporting processes, and making sure top leadership is engaged and committed to ESG initiatives. With the right approach, ESG reporting can bring about a brighter financial future for companies, instead of the painful consequences of neglect.

What tips do you have to bolster your ESG reporting capabilities?