EXECUTIVE SUMMARY Even though sustainability reporting is becoming more widespread, many organizations are still only reporting the bare minimum. This opens these corporations to costly risks, a lack of support from shareholders, and a poor public image. To decrease these risks, companies need to prioritize ESG reporting. For corporations, investors, and rating agencies that value ESG factors, they have to manage a landscape full of challenges. Corporations face greater scrutiny from the public on their ESG performance and are also struggling with not having a standard way to report ESG activity. Investors similarly deal with a lack of standardization and are struggling to evaluate material ESG risks. Rating agencies face the challenge of providing valuable, quality data when there are no uniform requirements for ratings. They also have to deal with an ever-changing world and how these changes impact ratings.
These challenges and risks are essential to incorporate into management plans, but they should not be taken as the complete picture of the state of environmental, social, and governance programs. There are plenty of opportunities for ESG growth. Emphasizing ESG initiatives can also benefit corporations, including less regulatory and legal pressures and improved employee productivity. Now is the time to manage these ESG risks and reap the benefits of growth opportunities. SGS offers ESG verification and assurance services, enabling corporations, investor groups, and rating agencies to provide high-quality results. We also help boards of directors and C-suites continually grow in their ESG management and certifications. By placing environmental, social, and governance practices at the forefront, corporations can become leaders in their industries.
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