A recent IDC Market Note, Stakeholder-Focused Approaches to Creating a Sustainable Business — Part 1: PwC Helps Clients Address Investors' Demand for Improved ESG Reporting, (September 2019, IDC #US45464019) states that: “The prioritization of efforts around environmental, social, and governance (ESG)–related issues has become a prevalent theme in today's business world, as consumers and employees are increasingly turning to companies that positively impact the societies and environments they operate in. Topics such as climate change, diversity and inclusion, executive compensation, and changes in peoples' lifestyles and diets are only a few of the driving forces underlying this trend.”
Given the rapid growth of the ESG investing area, professional services firms like PwC have been building and delivering strategies and capabilities to help companies address the challenges that come with this new form of financial rating procedures and investor demands.
There are four key areas which PwC focuses on:
"Global value of ESG based AUM has grown by 34%. Increasingly, customers and investors are driving companies to improve their ESG performance", says Todd Bialick, PwC's Process Assurance and Trust and Transparency Solutions Leader. "A critical activity for improving ESG performance is in establishing the right metrics, controls and reporting requirements - and building trust in the process."