ESG reporting

What is ESG reporting and why it’s vital to your company’s narrative

Why does your company need ESG reporting?

As the risks and opportunities associated with ESG come into sharper focus, it’s becoming a business imperative for companies to develop a strategy for ESG reporting — and that they verify the data. Increased scrutiny from investors, new regulatory requirements and shifting consumer expectations mean companies face new pressures to measure, disclose and make progress on ESG initiatives.

Stakeholders across the business spectrum see ESG as a window into a company’s future. ESG reporting and metrics are also an important indicator of a company’s overall health, and how and what you report can lay the foundation for a compelling story about the impact your company is making on the world.

58% of CEOs globally said they have — or are in the process of developing — a data-driven, enterprise-level strategy for reducing emissions and mitigating climate risks

What regulations exist for ESG reporting?

Global regulations are evolving quickly. While some of the new or proposed rules and regulations have a singular focus on climate change issues, others address sustainability more broadly.

  • The Securities and Exchange Commission (SEC): The US agency is set to finalize new rules for climate disclosures that, as proposed, focus on the oversight of climate-related risks, the financial impacts of severe weather events and greenhouse gas emissions.

  • The European Financial Reporting Advisory Group (EFRAG): Its member organizations developed new, expansive ESG reporting requirements under the Corporate Sustainability Reporting Directive (CSRD). These will impact EU-listed companies as well as non-EU-listed companies with large subsidiaries in the region.

  • The Financial Conduct Authority (FCA): The UK financial markets regulator, requires UK-listed companies to disclose whether their climate-related disclosures are aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) framework, or explain why not.

  • The International Sustainability Standards Board (ISSB): The board has developed two sustainability standards expected to be finalized later this year. One focuses specifically on climate-related issues while the second covers general sustainability-related disclosures. Additional standards are expected.

Why is ESG assurance important?

Many of the new global regulatory sustainability standards would require independent assurance of ESG data, such as Scope 1 and Scope 2 greenhouse gas emissions, as a way to bolster confidence in the accuracy of this information in the marketplace.

Companies should have a strategy for validating ESG data and should develop processes and controls that support that data from the sources (internal and external) to reporting. Within its processes, companies should have controls around data collection, calculation and reporting that establish a consistent methodology for collecting timely and accurate information across the value chain.

Working with an independent auditor to validate ESG data can lend credibility to your organization and build trust among key stakeholders at a time when investors are using this information in their decision-making process and there is some skepticism about the robustness and accuracy of these disclosures.

How to move to investor-grade reporting

Ready to take the next step on your ESG reporting journey? PwC can help

Compelling ESG reporting requires collaboration and insight from across the organization to work toward common goals as a team.

Why work with PwC to help you take the next step forward? Because wherever you are on your journey, we’re ready to meet you there. We bring purpose, vision and practicality to your unique set of challenges — and we understand where you’re coming from. We’ve been on our own ESG journey, and we’re ready to share our insights and successes to help you.

Our passionate, multi-disciplinary teams provide insights across industries and are here to help your company:

  • Quickly get started on your ESG strategy, including areas such as climate risk and diversity, equity and inclusion, that can enhance your growth and reputation.
  • Understand and leverage the various ESG standards and frameworks to develop a compelling story for your investors, board and other stakeholders that inspires them to come along for the ride.
  • Comply with evolving global regulators, including proposed or potential SEC disclosures rules related to climate, human capital and cybersecurity.
  • Develop investor-grade ESG metrics that your shareholders can trust.
  • Tech-enable your ESG reporting to make the data useful to your business throughout the year.
  • Inform your stakeholders about key ESG topics, including the board of directors — who will expect management to be ahead of the curve.

PwC's ESG journey

Supporting a more equitable and sustainable planet

As part of the PwC global network, we've set 2030 goals to achieve net zero emissions.

Building on a Culture of Belonging

We remain steadfast in our committment to diversity, equity and inclusion.

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Kevin O’Connell

Trust Solutions Sustainability Leader, PwC US

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Gena Sullivan

Partner, PwC US

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Sara DeSmith

Sustainability Partner, PwC US

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