ESG reporting refers to the disclosure of a company's environmental, social, and governance (ESG) performance to stakeholders. It is important because it helps companies to manage risks, identify opportunities, and improve sustainability practices. ESG reporting also enables stakeholders to make informed decisions about investing, working for, or purchasing from a company based on its ESG performance.
Non-compliance with ESG reporting requirements can result in penalties ranging from monetary fines to suspension of trading on stock exchanges.
ESG performance is benchmarked against industry peers using various ESG rating frameworks, such as the Dow Jones Sustainability Index, the Carbon Disclosure Project, and the Global Reporting Initiative.
Some best practices for ESG reporting in India include aligning ESG goals with business strategy, engaging stakeholders in the ESG reporting process, setting clear targets and timelines, and ensuring the accuracy and transparency of ESG data.
ESG reporting can help companies attract socially responsible investors by demonstrating their commitment to sustainability, which is becoming increasingly important to investors. Companies that report on their ESG performance are seen as more transparent, responsible, and trustworthy.
ESG reporting can help companies improve their sustainability practices by identifying areas for improvement, setting sustainability goals, and monitoring progress. It can also help companies to manage risks and opportunities related to ESG issues.
Enterslice can help companies with ESG reporting in India by providing guidance on best practices and frameworks, developing ESG strategies, conducting materiality assessments, collecting and analyzing data, engaging stakeholders, reporting and disclosing ESG performance, providing third-party assurance, conducting sustainability risk assessments, and offering ESG training and capacity building.