2021-06-01 00:00:00, Mark Burstein, Forbes
Content Categorization
/Business & Industrial
/Finance
Word Count:
720
Words/Sentence:
22
Reading Time:
7.20 min
Reading Quality:
Advanced
Readability:
16th or higher
Environmental, social and corporate governance (ESG) is a set of standards for company operations that both socially conscious consumers and investors use to evaluate the values and goals of a business, as well as how seriously those goals and values are taken.
In an environment where a report from the World Economic Forum says that more than 25% of a company's market value is determined by its reputation and increased demands from consumers for supply chain transparency, you need a strong ESG strategy and implementation road map.
ESG Reporting And Its Critical Importance
To communicate urgency, as well as a commitment to ESG, and to quantify and validate efforts, organizations must create an effective ESG reporting structure that meets these criteria:
• Provides a full picture of your value-creation potential as well as your company's risk landscape.
Relationships with employees, vendors, customers and communities all play a part in social criteria, and governance looks at company leadership, audits, executive pay, shareholder rights and internal controls.
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As consumers and investors increasingly demand environmental, social and governance transparency from companies, businesses are struggling to get clarity and transparency for themselves, let alone external parties.
Keywords
ESG
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