Below is an excerpt from ISS Corporate Solutions’ recently released paper “ESG Disclosure Trends in Europe: Climate, Labor Lead Improvements.” The full paper is available for download from the ISS Corporate Solutions (ICS) online library.
Last year saw the consequences of climate change appear in the form of record- breaking heatwaves, extreme droughts and disastrous flooding as the world population broke through the eight billion mark. Stakeholders are pressing companies in Europe and other regions to reduce their negative environmental impacts and drastically improve their transparency and accountability.
European companies are also preparing themselves for more stringent regulations being developed on both the national and international level. Compliance with Task Force on Climate-Related Disclosure (TCFD) and the Corporate Sustainability Reporting Directive (CSRD) requirements is becoming increasingly important for companies in Europe.
- Disclosures relating to Carbon and Climate showed the greatest improvement among environmental issues at 43% followed by waste and toxicity at 30%
- Metrics, Risk Assessments & Strategy, and targets made up almost three-quarters of the overall changes in environmental disclosures
- Within the environmental metrics, Energy and Fuel Efficiency showed the most improvement followed by Emissions and Spills
- Among social topics, Labor, Health and Safety showed the greatest improvement at 34%, with Stakeholders & Society at 31%
Stephan Stegmueller, Executive Director, ESG Advisory, ISS Corporate Solutions
Everitt Newton, Associate Vice President, ESG Advisory, ISS Corporate Solutions