How to Prepare for Mandatory ESG Reporting
Environmental, social, and governance (ESG) regulations are in development worldwide, with several set to come into effect for 2024. To help you prepare, download a copy of The Coming ESG Reporting Imperative, an IDC Spotlight paper, sponsored by AuditBoard. In it, you’ll find an overview of the current regulatory environment, five best practices to get started, and ways technology can support ESG reporting.
Environmental, social, and governance (ESG) reporting is undergoing significant transformation in the wake of new reporting regulations, a trend that is expected to continue through 2023. While ESG reporting maturity varies significantly among organizations, with some just beginning their journey and others having well-defined processes in place, the commonality is that, to date, all reporting has largely been voluntary. Although stakeholders often request ESG performance documentation, the “what” and the “how” of information creation have largely been self-determined by the organization. New ESG reporting regulations are emerging around the globe and will introduce formal policies on how information is reported, substantiated, and assured.
For example, a key piece of European legislation is the EU’s Corporate Social Responsibility Directive (CSRD), which enforces accountability and mandates that companies audit their reported sustainability information. Since it takes effect in January 2025, it will impact reporting for the 2024 fiscal year. The U.S. Securities and Exchange Commission (SEC) has proposed rule changes that would require companies to disclose certain climate-related risk information. To ensure consistency among emerging regulations, standards organizations like the International Sustainability Standards Board (ISSB), a body within the IFRS Foundation, is working to establish new global reporting requirements with the intention of providing similar uniformity that adheres to financial reporting.
Regardless of their final versions, these evolving regulations will increase the complexity of sustainability initiatives for companies. To help you prepare your organization for compliance, download a copy of The Coming ESG Reporting Imperative, an IDC Spotlight paper, sponsored by AuditBoard. In it, you’ll find:
Environmental, social, and governance (ESG) reporting is undergoing significant transformation in the wake of new reporting regulations, a trend that is expected to continue through 2023. While ESG reporting maturity varies significantly among organizations, with some just beginning their journey and others having well-defined processes in place, the commonality is that, to date, all reporting has largely been voluntary. Although stakeholders often request ESG performance documentation, the “what” and the “how” of information creation have largely been self-determined by the organization. New ESG reporting regulations are emerging around the globe and will introduce formal policies on how information is reported, substantiated, and assured.
For example, a key piece of European legislation is the EU’s Corporate Social Responsibility Directive (CSRD), which enforces accountability and mandates that companies audit their reported sustainability information. Since it takes effect in January 2025, it will impact reporting for the 2024 fiscal year. The U.S. Securities and Exchange Commission (SEC) has proposed rule changes that would require companies to disclose certain climate-related risk information. To ensure consistency among emerging regulations, standards organizations like the International Sustainability Standards Board (ISSB), a body within the IFRS Foundation, is working to establish new global reporting requirements with the intention of providing similar uniformity that adheres to financial reporting.
Regardless of their final versions, these evolving regulations will increase the complexity of sustainability initiatives for companies. To help you prepare your organization for compliance, download a copy of The Coming ESG Reporting Imperative, an IDC Spotlight paper, sponsored by AuditBoard. In it, you’ll find:
- The implications of formalized standards, such as compliance costs and assurance expectations.
- Five best practices for ESG reporting.
- Insights on how technology can support ESG reporting at each stage of the process, as well as ideal capabilities of an ESG reporting platform.
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