Even though investors and companies increasingly agree on which corporate environmental, social, and governance (ESG) issues affect a company’s financial value, there are still disconnects regarding metrics and disclosure. A new study, Finding Common Ground on the Metrics that Matter, released by the Investor Responsibility Research Center (IRRC) Institute, deep dives into these concerns and provides the first comprehensive analysis of which corporate ESG information is tracked by companies and how it is –or isn’t –consistent with analogous information sought by investors, researchers and other stakeholders.
In broad terms, the study revealed that:
- There is agreement on key corporate sustainability issues, but not on the metrics used to measure the management of them, nor on the purposes served by examining corporate ESG information.
- Though ESG metrics routinely are reported on request by many companies, few report all the ESG information they collect internally.ESG researchers, investors and corporate representatives approach ESG issues from a risk mitigation perspective, not a value creation perspective.
In addition, key data from the study concluded that: (more…)