New ESG reporting measures published by the World Economic Forum

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A set of universal environmental, social and governance (ESG) metrics and disclosures released Tuesday by the World Economic Forum are designed to help companies report non-financial disclosures.

“Stakeholder capitalism measures”, including ESG indicators and information to be provided to financial markets, investors and society, are designed to facilitate benchmarking of sustainable business performance.

A world economic forum publication encourages companies to report on all parameters in their traditional reports. The publication recommends that each business apply its own view of dynamic materiality, reporting on what is deemed important to its business and its stakeholders.

The metrics are centered on four pillars:

  • People: Reflect the fairness of a business and its treatment of employees. The metrics include reports on diversity, pay gaps, and health and safety.
  • Planet: Reflect the dependencies and impact of a business on the natural environment. The parameters of this pillar include greenhouse gas emissions, land protection and water use.
  • Prosperity: Reflect how a business affects the financial well-being of its community. Parameters include employment and wealth creation, taxes paid, and research and development spending.
  • Principles of governance: Reflect the purpose, strategy and responsibility of a business. This pillar includes criteria measuring risk and ethical behavior.

In parallel with this work, the World Economic Forum worked with five leading independent global frameworks and standard-setters to develop a comprehensive reporting system and statement of intent that complements common actions.

Earlier this month, the International Integrated Reporting Council, the CDP, the Climate Disclosure Standards Board, the Global Reporting Initiative and the Sustainability Accounting Standards Board announced a shared vision of what is needed to move towards corporate reporting. comprehensive business and intend to work together. to achieve this. The International Federation of Accountants also called for the creation of a new sustainability accounting standards board that would exist alongside the International Accounting Standards Board under the umbrella of the IFRS Foundation.

“This is a unique moment in history to lead by example and make stakeholder capitalism measurable,” Klaus Schwab, founder and executive chairman of the World Economic Forum, said in a press release. “The fact that companies agree not only to measure but also to report on their environmental and social responsibility will represent a radical change in economic history.”

Ken tysiac ([email protected]) is the JofAeditorial director of.



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