Below is an excerpt from ISS Corporate Solutions’ recently released paper “ESG Disclosure Trends in the U.S.: Transparency Continues to Improve.” The full paper is available for download from the ISS Corporate Solutions (ICS) online library.
Summary:
As regulators prepare to impose stricter sustainability reporting requirements, stakeholder demand for improved disclosures continues to increase. An ISS Corporate Solutions (ICS) analysis identified the most notable Environmental and Social disclosure trends across the Russell 3000 index and compared disclosures as of the end of 2022 with a year earlier. The analysis shows that 52 percent of the improvements in disclosures focused on Social issues, while 48 percent dealt with the Environment, especially climate change.
Key Takeaways:
- Corporate transparency regarding Environmental and Social issues continued to improve in the U.S. in 2022, in response to growing pressure from investors, regulators, and other stakeholders.
- Climate change dominated the Environmental aspect of improving disclosures, with many organizations viewing the topic as material to their risk mitigation efforts.
- Enhancements to Social disclosures reflected societal trends regarding employee engagement and satisfaction, along with diversity, equity, and inclusion.
By: Daniel Feinberg, Sustainability Advisory, ISS Corporate Solutions
