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

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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.

Getty

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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