U.S. SEC: Environmental, Social, and Governance Risks Better Be on Your Radar
Organizations are under increasing pressure from shareholders, regulators, and other key stakeholders to report on environmental, social, and governance (ESG) issues. The movement to accurately measure and report the impacts that organizations have on the environment, climate, natural resources, workforce, and community (and their related ethical implications) is rapidly changing how the public interacts with and values businesses and government institutions.
The business world is clearly responding. In 2011, 20% of companies on the S&P 500 issued reports related to sustainability, according to the Governance & Accountability Institute. Today, that number is 90%. It is not surprising, then, that measuring the accuracy of this new discourse has come under increased regulatory scrutiny.