ESG, the latest flagship for financial reporting

ESG which is an acronym for Environmental, Social and Governance borders on maintaining sustainable business practices that are true, fair, and reliable across an entity’s business model.

By engaging in ESG practices, organisations ensure that they are more accountable and responsible in how they conduct their businesses. Increasingly, stakeholders now hold organisations accountable for the impact created by business operations and activities.

In essence, stakeholders tend to place more trust in organisations that demonstrate a sustained interest in communities, the environment and good governance. They expect organisations to do more than simply ‘tick a box’.

Organisations can help build trust and deliver sustained outcomes by implementing effective ESG strategies.

Investors, lenders, rating agencies and other interested stakeholders expect more transparency around financial and non-financial metrics to better understand a company’s performance, risks and opportunities.

Organisations also need to show how they create value - for shareholders and society alike - through insightful, balanced, and trusted performance and disclosure.

At PwC, we use our knowledge and expertise to produce in-depth, fact-based reports and articles that examine the trends shaping business, society, and the planet.

Through our research and insights, we seek to generate new ESG thinking, identify practical solutions, and build knowledge that helps to inspire action.