Strategic Focus: Future Evolution Of ESG Disclosures

Executive Summary

Since 2019, investors have ramped up their efforts to assess a firm’s environmental, social and governance (ESG) performance as part of the investment process. However, financial regulators have concluded that firms’ current disclosures do not meet the quality, frequency and consistency requirements that are necessary to satisfy sustainable finance policy goals. What is the result? There will be a slew of new climate and ESG disclosure laws over the next 12 months. This report provides senior managers in finance, sustainability and legal roles with analysis of how the ESG disclosures landscape will evolve over the next three years. Firms should ramp up their climate and sustainability data gathering and improve their reporting capabilities now – as they face several years of costly transition – to parallel the scope of voluntary and mandatory ESG reporting standards.