Best Practices: Integrating ESG And Financial Reporting

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Executive Summary

Sustainability reporting is the first step for firms embarking on the ESG journey. As regulations evolve and stakeholder scrutiny intensifies, organizations are increasingly required to integrate ESG factors into financial decision-making. This report analyses reporting practices from Fortune 500 organizations recognized for their sustainability to help corporates better integrate ESG and financial disclosures to generate trust in their sustainability commitments.

Table of contents

Sustainability claims rely on the integration of ESG and financial disclosures
Regulatory pressure drives ESG-financial disclosures through materiality assessments
Integrated ESG and financial disclosures futureproof business resilience
Best practices to integrate ESG and financial reporting
Identify the material impact of business operations
Embed ESG and sustainability into the business
Embrace transparency as a core element of ESG and financial reporting

Table of figures

Figure 1. Update on regulations requiring materiality assessments
Figure 2. Firms prioritize improvements in mandatory and voluntary ESG and sustainability reporting
Figure 3. Standout examples of ESG and financial reporting integration
Figure 4. Best practices to integrate ESG and financial reporting 
Figure 5. Example metrics to strengthen the integration of ESG and financial reporting

About the authors

Elisa Molero

Industry Analyst
Elisa Molero is an Industry Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on emerging solutions and global market trends around supply chain sustainability. Her background is in Economics, Leadership and Governance (BSc, University of Navarra). Prior to joining Verdantix, Elisa worked as a research analyst at the Centre For Economic Performance at the London School of Economics, where she completed a Master’s degree in Global Politics, with Distinction.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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