Under Fifty Percent Of Workforce Think ESG Compliance Reporting Is Right Thing To Do

A hot-topic in the legal profession is Environmental, Social, and Governance (a.k.a. E.S.G). Large and small businesses are facing a raft of reporting requirements. Those charged with the governance of affected organizations are obliged to present their compliance picture in a way that is transparent and coherent. Great strides have been made toward leveling the playing field on ESG by stakeholders such as consumers, regulators, and shareholders. Such measures which have been taken include the appointment of an officer exclusively charged with the Environmental, Social and Governance agenda. However, despite the efforts made already in this space, there is still a long way to go. Corporations large and small need to plan with a flexible approach to meet the stringent requirements of the Environmental, Social, and Governance landscape for the fast-approaching decades.

Testing The Temperature

It is beneficial to get a background on how Environmental, Social, and Governance are progressing around the world and to examine the hurdles being faced by those in the industry and how those affected are negotiating those problems in their internal compliance reporting procedures. A survey was commissioned in which nearly fifteen hundred influential business leaders from a wide range of sectors were approached for their comments on how Environmental, Social, and Governance measures are being implemented and their thoughts on the future direction of travel for these important issues, including:

• when the results of the survey were analyzed several fascinating trends appeared to emerge including but not limited to:
• around three-quarters of those who responded to the survey do not have any trust in the information, statistics, and facts being presented to interested parties
• just shy of sixty-six percent of those questioned influenced perceived that the businesses they were associated with lacked preparedness to comply with their Environmental, Social, and Governance targets and obligations.

Another just as important issue in this area is the changes made in reporting Environmental, Social, and Governance. Just a short of sixty percent of respondents to the survey answered affirmatively that they have taken positive steps to disclose their business position on climate change, sustainability, and Environmental, Social, and Governance. On a positive note, the majority of the respondents appeared to indicate that businesses were moving away from a situation where they were working on this issue in silos and towards a position where they are working and looking to work together cross-department.

Everyone Feeling Positive, Right?

Despite all the good mood music surrounding Environmental, Social, Governance, and other related matters there is a worry about the cost of the implementation of the measures to ensure compliance. Many business leaders are estimating that over the next year and a half the vast majority of those monies set aside for Environmental, Social, and Governance to notify the authorities of environmental factors.

Positive Thinking?

The survey results suggested that businesses who are communicating their Environmental, Social, and Governance position are finding real value as a result. Over seventy-percent of respondents reported a significant effect spread across the following business areas:

• finance, costs, and insurance
• credit control
• recruitment and retention and
• procurement.

A greater number of those who responded claimed that their efforts to comply with Environmental, Social, and Governance requirements have had a positive effect on the morale of the workforce, staff recruitment, and the building of external and internal relationships.

Way Forward?

Affected businesses who can enhance their notification of Environmental, Social, and Governance by making it easier will be the most effective in this arena in future years.

ASSESSING FIRMS

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THE ARTICLE WAS WRITTEN USING THE FOLLOWING SOURCES

[1] Iskow, Julia – Survey Results: ESG Practitioners Underprepared for Changing Global Regulations and Challenging Reporting Requrements – 3BLCSRWire – 24 June 2022 - CSRWire - Survey Results: ESG Practitioners Underprepared for Changing Global Regulations and Challenging Reporting Requirements

[2] 2022 Global ESG Survey: Top Opportunities and Challenges of ESG Reporting - 2022 Global ESG Survey: Top Opportunities and Challenges of ESG Reporting | Workiva

[3] 2022 ESG Reporting Survey – Five Global Insights - esg_reporting_survey_infographic-en.pdf (workiva.com)

[4] No justice without a defense: New data shows funding needed now – Law Society – 11 February 2022