ESG Reporting: Definition
An ESG report is a document released by a company detailing its impact on environmental, social, and governance aspects.
For Sustainability Managers
Understanding ESG Reporting helps you select the right frameworks and meet evolving disclosure requirements.
For CFOs
ESG Reporting shapes mandatory reporting obligations that carry financial and legal consequences for non-compliance.
For Sustainability Reporting
ESG Reporting is a core element of sustainability reporting that auditors and regulators expect to see addressed.
Related Terms
ESG
ESG, which stands for "environmental, social, and governance", represents a stakeholder-focused approach to business. It operates on the principle that sustainability encompasses more than just environmental considerations. As ESG gains prominence among directors, it's vital to consider the unique global factors that influence regional priorities. Companies adhering to ESG standards commit to ethical conduct in these three areas and can leverage a variety of strategies, tactics, and ESG solutions.
Extended External Reporting (EER) Assurance
Extended External Reporting (EER) Assurance refers to engagements that provide assurance on various forms of non-financial reporting, including integrated reporting, sustainability reporting, and non-financial reporting concerning environmental, social, and governance matters.
Sustainability reporting
Sustainability reporting is a means for companies to disclose their environmental and social performance. In certain jurisdictions, it is obligatory for companies of a certain size. Nevertheless, even when not mandated, customers, investors, and prospective employees increasingly demand information on a company's actions to reduce greenhouse gas emissions and achieve net-zero emissions by 2050, aligning with the Paris Agreement.
1.5°C
The Paris Agreement commits countries to limit global warming to well below 2°C above pre-industrial levels, with an even more ambitious target of 1.5°C to avert severe climate changes. Achieving the 1.5°C trajectory necessitates halving emissions by 2030 and reaching net-zero emissions by 2050.
AASB
The Australian Accounting Standards Board (AASB) is a government agency in Australia responsible for developing and maintaining financial reporting standards applicable to entities in both the private and public sectors of the Australian economy. This includes the development of accounting and external reporting standards and guidance related to sustainability-related financial information, which is aligned with principles, caters to external report users' needs, and can be subject to assurance and enforcement.