Include ESG in financial reporting

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 05, 2021, 3:11 AM GMT+0

Investors, the media, and the public can help regulators scrutinise corporations for greenwashing practices. 

As regulators and customers scrutinise brands for their environmental, social, and governance (ESG) efforts, many organisations worldwide are establishing ESG policies. Corporate leadership is especially being held accountable for enforcing ESG standards, as greenwashing practices come to light.

For example, Royal Dutch Shell was ordered by a Dutch court to “demonstrably” cut emissions by 45% by 2030, despite having made public ecological commitments. Companies should make sustainability a top-down priority and bring ESG under audited financial reporting to prevent any greenwashing allegations.

Businesses must ensure their ESG efforts have a dedicated budget to support any changes or improvements needed in the business model. Have a direct feedback mechanism with the stakeholders, communicate ESG stories to the media and invest in sustainable tech to back green claims.

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