ESG (environmental, social, and governance) regulation and disclosure requirements are rapidly increasing worldwide. Investors, customers, partners, and shareholders need to know that corporations are living up to their ESG reporting commitments and marketing claims.
In California, two landmark climate-related disclosure bills passed, requiring increased corporate transparency around greenhouse gas emissions and climate risks for more than 10,000 private and public companies. Alongside California’s bills, the European Union’s Corporate Sustainability Reporting Directive (CSRD) is already set to impact up to 50,000 entities both inside and outside of the EU, including at least 3,300 companies in the U.S. In tandem, the U.S. Securities and Exchange Commission’s proposed rule changes that would require certain sustainability-related disclosures in financial reports.
While the demand for ESG transparency grows, companies still need to cut costs, reduce complexity, and find more efficient ways to do business. Balancing all of this while understanding and navigating the complexity
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