Reporting universal material ESG metrics is key to create the transparency that is paramount to trust.
Companies are increasingly facing demands to report about their sustainability and ESG performance using multiple ESG reporting frameworks. This is not only a problem for companies but also for stakeholders that face a lack of consistency and comparability of ESG metrics. How could companies credibly demonstrate to all their stakeholders their commitment and progress on sustainability and their contributions to the UN Sustainable Development Goals? For these reasons the World Economic Forum’s International Business Council (WEF-IBC) identified a set of universal, material and quantified ESG metrics and recommended disclosures that are ready to be used in Annual Reports to create a consistent basis across industry sectors and markets. The metrics are designed with verification through limited assurance in mind, to enhance transparency, accountability and trust.
Making reporting useful for companies, financial markets and the economy.
Sustainability / ESG metrics should be capable of verification and limited assurance, to enhance transparency and alignment among stakeholders, investors, banks and corporations. The defined set of core ESG metrics attracted strong support from the Weforum’s IBC community resulting in their commitment to start reporting against the metrics at the earliest opportunity.
The result of the development by the WEF-IBC is a non-financial reporting framework consisting of 21 established quantified metrics and disclosures and 34 expanded metrics that are available to WEF-IBC members and any company for sustainability reporting.
- 21 Core metrics that are critical to ESG reporting of the activities within your company.
- 34 Expanded metrics to provide a more advanced way of measuring and communicating sustainable value creation with a wider value chain scope.
Creating momentum to ESG reporting convergence
We believe that the further interrelation of the UN Sustainable Development Goals and the global leading ESG reporting and rating frameworks is essential to help companies achieve long-term sustainable value creation with the same standards as financial reporting. By reporting on the WEF-IBC core metrics and making them part of sustainability performance management, a company demonstrates to its stakeholders that it diligently weights all sustainability risks and opportunities on an ongoing business with the highest level op urgency and priority.
Companies that align their goals to the long-term goals of society, as articulated in the SDG’s, are the most likely to create long-term sustainable value, while driving positive outcomes for their business, the economy, society and the planet. This is the definition of Stakeholder Capitalism as defined by Klaus Schwab.
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Kind regards
Peter Storm
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