Executives increasingly take stakeholder considerations into account when they make decisions, and directors have a fiduciary duty to understand the environmental and social impacts of the business and related implications to the company’s risk profile and strategy. In an age of transparency, there is an increasing call for companies to demonstrate a broader purpose to build trust with all stakeholders and ultimately drive long-term value. A core concept is that nonfinancial factors can and do have a financial impact that can be realized in both the short and long term.
Companies currently are placing more emphasis on the extent, form, location, and content of their environmental, social, and governance (ESG or sustainability) disclosures. Investors, customers, and employees are driving the marketplace transformation and have called for ESG transparency and for bringing sustainability disclosure into the mainstream.
- PDF, Size 0.47 mb