Strategic Focus: Integrating ESG into Financial Disclosures

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Executive Summary

The ESG reporting landscape is rapidly evolving. Mandatory integrated reporting is on the rise, with significant impacts on how ESG disclosures are organized and implemented within a firm. Data collection processes will need to become more rigorous and ESG reporting will require more oversight and governance. This report provides an overview of impending ESG disclosure requirements and identifies the technology, process and controls changes that firms will need to operationalize to support the integration of ESG into financial disclosures. 

Table of contents

Integration Of ESG Into Financial Disclosures Heralds A New Era For ESG Reporting 
Proposed ESG Disclosure Rules Reflect Increasing ESG Expectations From Investors
ESG Disclosures Are Directly Impacting Corporates’ Access To Critical Resources Today 
Firms Will Align Disclosure Strategies With Their ESG Ambition
Technology Can Help Elevate Reporting Capabilities and Support Assurance

Table of figures

Figure 1. Comparative analysis of CSRD, ISSB and SEC proposals

About the authors

Lily Turnbull

Industry Analyst
Lily is an Industry Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on ESG and sustainability services, ESG assurance, and sustainable finance. Lily joined Verdantix in 2022 and has previous experience in social impact research and ESG software development. She holds an MSc in Women, Peace & Security from the London School of Economics and Political Science and a BA in Theology & Religion from the University of Bristol.

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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