Investors are unsatisfied with the
environmental, social and governance (ESG) information currently
provided by companies, according to a report by the Professional
Accountants in Business Committee (PAIB).
The PAIB, part of the International Federation
of Accountants, report found that as investors increased
their use of ESG information to better understand an organisation’s
processes, the inconsistencies and insufficiencies in company
disclosures have become more visible.
Investors have described ESG issues as
“complex, and therefore, difficult to articulate, assess and
integrate into investment decisions”.
The core ESG information required by the
investors includes items such as greenhouse gas emissions, water
and energy use, workplace health and safety and board
effectiveness.
The report also includes recommendations for
professional accountants to better answer the investors’ ESG
information demand.
