ESG is everywhere
In the media, in boardrooms and in job advertisements
Great ESG performance is also everywhere. There are many businesses who have been quietly meeting their ESG obligations and more, who now have an increasing advantage over their less sustainable competitors. To capture this opportunity and get the recognition they deserve they are going to need to understand and follow the emerging set of ESG regulatory reporting standards. Investors, customers and other stakeholders are increasingly preferring companies with strong ESG credentials and they are demanding a standard approach.
Regulators, led by the EU, are attempting to codify how companies can talk about their ESG performance. Imaging accounting standards, but for ESG.
This is no small problem to solve. Tracking performance across issues as diverse as biodiversity, carbon emissions, social diversity and inclusion, ethical business practices, and worker health and safety is difficult to reduce to simple metrics, and requires an enormous amount of data and analysis. It not quite the same as the P&L. Concepts like the ‘balanced scorecard’ have been around since the early 1990s and are being reimagined for the ESG era, but there is no common standard for how and what to report on ESG matters.
We can be certain that regulatory reporting is about to get a whole lot tougher and unlocking the ability to report on a firm’s good deeds in a way that complies with the regulations will become more and more important.
Here at Primacy we love an opportunity to make complex regulations more accessible and usable, it’s the exact problem that inspired us to invent our OPMTL technology. Our growing library of ESG regulations can be used to power new reporting tools that align to the law from the start.
If you are interested to learn about how you can use these solutions in your business, please contact us here.
Primacy - Closing the gap between legislation and business
