{"id":1541,"date":"2020-09-23T02:23:20","date_gmt":"2020-09-23T02:23:20","guid":{"rendered":"https:\/\/travelcommunication.net\/?p=26342"},"modified":"2020-10-23T21:23:31","modified_gmt":"2020-10-23T21:23:31","slug":"top-global-companies-take-action-on-universal-esg-reporting","status":"publish","type":"post","link":"https:\/\/www.travelindex.org\/media\/global-travel-news\/top-global-companies-take-action-on-universal-esg-reporting\/","title":{"rendered":"Top Global Companies Take Action on Universal ESG Reporting"},"content":{"rendered":"
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New York, USA, September 23, 2020 \/ TRAVELINDEX \/ The World Economic Forum today released a set of universal environmental, social and governance (ESG) metrics and disclosures to measure stakeholder capitalism that companies can report on regardless of their industry or region. Organized around the pillars of principles of governance, planet, people and prosperity, the identified metrics and disclosures align existing standards, enabling companies to collectively report non-financial disclosures.<\/p>\n

Announced at the fourth annual Sustainable Development Impact Summit<\/strong>, this open and multi-stakeholder initiative delivers on a commitment<\/strong> from the World Economic Forum Annual Meeting 2020 in January. Since then, 120 members of the Forum\u2019s International Business Council have shown strong support for ESG metrics, with some companies expected to begin incorporating them into their reporting immediately.<\/p>\n

The report, \u201cMeasuring Stakeholder Capitalism: Toward Common Metrics and Consistent Reporting of Sustainable Value Creation<\/a><\/em>\u201d, comes at a pivotal moment. The social unrest, economic inequalities and racial injustice exacerbated by the COVID-19 pandemic has accelerated demand from business, governments, standards bodies and NGOs for a comprehensive, globally accepted corporate reporting system.<\/p>\n

\u201cThis is a unique moment in history to walk the talk and to make stakeholder capitalism measurable,\u201d says Klaus Schwab, Founder and Executive Chairman, World Economic Forum. \u201cHaving companies\u00a0accepting, not only to measure but also to report on, their environmental and social responsibility will represent a sea change in economic history.\u201d<\/p>\n

The stakeholder capitalism metrics and disclosures, developed in collaboration with Deloitte, EY, KPMG and PwC, reflect an open consultation process with corporates, investors, standard-setters, NGOs and international organizations, and are designed to provide a common set of existing disclosures that lead towards a coherent and comprehensive global corporate reporting system.<\/p>\n

In parallel to this work, the World Economic Forum has also collaborated with the Impact Management Project<\/strong> to bring together the efforts of the five leading independent global framework and standard-setters (CDP, CDSB, GRI, IIRC and SASB) to work towards a comprehensive corporate reporting system and a statement of intent which works as a complement to the common metrics released today.<\/p>\n

Companies see the importance of social, climate and other non-financial factors as critical for their long-term viability and success. Some 86% of executives surveyed by the Forum agreed that reporting on a set of universal ESG disclosures is important and would be useful for financial markets and the economy.<\/p>\n

Expert views: <\/strong>
\n\u201cCompanies have to deliver great returns for shareholders and address important societal priorities,\u201d said Brian Moynihan, Chairman and CEO of Bank of America, and Chairman of the International Business Council. \u201cThese metrics will provide clarity to investors and other stakeholders and ensure capital is aligning to drive progress on the SDGs. That\u2019s stakeholder capitalism in action.\u201d<\/p>\n

\u201cAs the UK works in partnership with Italy towards hosting the COP26 climate change conference in Glasgow in November 2021, I welcome the work of the World Economic Forum\u2019s International Business Council in creating a set of common metrics for reporting sustainable value creation,\u201d said Mark Carney, Finance Advisor to the UK Prime Minister for COP26 and United Nations (UN) Special Envoy for Climate Action and Finance. \u201cThrough this work you are demonstrating to shareholders, stakeholders and society at large that the private sector is committed to measuring and improving its impacts on the environment as part of the transition to a low carbon future. I encourage governments, regulators, the official accounting community and voluntary standard setters to work with the IBC towards creating a globally accepted system of sustainability reporting based on this project\u2019s groundbreaking work.\u201d<\/p>\n

\u201cThe disruptions of 2020 have underscored the critical importance of organizations managing and reporting their impact on the economy, the environment and society, and their increasing connection to long-term enterprise value creation,\u201d said Punit Renjen, CEO, Deloitte Global. \u201cDeloitte is pleased to have led the development of the Principles of Governance pillar and collaborated on this project with so many respected organizations. We hope our work supports organizations as they move towards consistent reporting of ESG metrics and disclosures in mainstream annual reports, as ultimately, this is how the business community will make greater progress against the Sustainable Development Goals.\u201d<\/p>\n

\u201cThe time is now for companies to broaden their engagement with stakeholders,\u201d said Carmine Di Sibio, EY Global Chairman and CEO. \u201cThe combined impacts of climate change, COVID-19 and economic inequality contribute to the urgency for businesses to embrace long-term, sustainable value creation and prioritize the needs of people and planet and the creation of broad-based economic prosperity.\u201d<\/p>\n

\u201cAs businesses become more acutely aware of their role in addressing societal and environmental issues, moving toward a common set of ESG-focused metrics will help ensure that we all collectively make a difference where it counts,\u201d said Bill Thomas, Global Chairman and Chief Executive Officer, KPMG International. \u201cReporting on ESG factors like carbon emissions and human rights and other key metrics will not only help inform investors while helping companies control their full corporate value, it has the power to realign capitalism for the benefit of broader society.\u201d<\/p>\n

\u201cRobust non-financial reporting is a crucial element of the systemic economic reform the world needs to address issues like climate change and social inclusion, and we were pleased to be able to collaborate on this initiative and lead on the Planet pillar of this work,\u201d said Bob Moritz, Global Chairman, PwC. \u201cStakeholders \u2013 including investors, but also policy makers, consumers and employees \u2013 need more rounded, comparable and robust information to make decisions. Get that information flowing, align market incentives against performance on these metrics, and a better tomorrow becomes possible.\u201d<\/p>\n

Companies are encouraged to report on the full set of metrics in their mainstream reporting. \u201cMeasuring Stakeholder Capitalism: Toward Common Metrics and Consistent Reporting of Sustainable Value Creation<\/em>\u201d recommends a \u201cdisclose or explain\u201d approach when certain metrics are not feasible, not relevant, or difficult to implement immediately. The report also recommends that each company apply its own view of dynamic materiality, reporting on what is deemed material to its business and stakeholders. The metrics are centred on four pillars:<\/p>\n

Reporting pillars:<\/strong><\/p>\n

People
\n<\/strong>Reflects a company\u2019s equity and its treatment of employees. Metrics include diversity reporting, wage gaps, and health and safety.<\/p>\n

Planet
\n<\/strong>Reflects a company\u2019s dependencies and impacts on the natural environment. Metrics in this pillar include greenhouse gas emissions, land protection and water use.<\/p>\n

Prosperity
\n<\/strong>Reflects how a company affects the financial well-being of its community. Metrics include employment and wealth generation, taxes paid and research and development expenses.<\/p>\n

Principles of Governance
\n<\/strong>Reflects a company\u2019s purpose, strategy and accountability. This pillar includes criteria measuring the of risk and ethical behaviour.<\/p>\n

About the Sustainable Development Impact Summit 2020<\/strong>
\nThe fourth World Economic Forum Sustainable Development Impact Summit\u00a0comes at a time unlike any other.\u00a0Under the\u00a0theme,\u00a0Realizing a Great Reset for Sustainable Development, this year\u2019s summit brings together more than 3,800 leaders from government, business and civil society. From more than 141 countries, voices at the cutting\u00a0edge of sustainable development\u00a0are meeting virtually for the first time. They will share new perspectives to\u00a0initiate, accelerate and scale-up entrepreneurial solutions\u00a0that\u00a0advance\u00a0the\u00a0Sustainable Development\u00a0Goals and\u00a0tackle climate change.<\/p>\n","protected":false},"excerpt":{"rendered":"

New York, USA, September 23, 2020 \/ TRAVELINDEX \/ The World Economic Forum today released a set of universal environmental, social and governance (ESG) metrics and disclosures to measure stakeholder capitalism that companies can report on regardless of their industry or region. Organized around the pillars of principles of governance, planet, people and prosperity, the …<\/p>\n","protected":false},"author":0,"featured_media":4657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-travel-news"],"_links":{"self":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/posts\/1541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/comments?post=1541"}],"version-history":[{"count":0,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/posts\/1541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/media\/4657"}],"wp:attachment":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/media?parent=1541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/categories?post=1541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/tags?post=1541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}