While financial reporting standards develop in a more or less coherent way between jurisdictions, it is far from clear that the same will be true of ESG disclosure standards. Although companies are required to report on the broader impact of their business, there are no clearly defined standards for doing so, and the level of audit assurance is typically lower.
Governments, however, increasingly recognise that the role of the private sector in getting to net-zero can only be properly evaluated if there is a more standardised approach to non-financial reporting. Moves towards more structured disclosure around people, the planet and purpose could, however, bring materiality risks.
How do you manage all this if you are sitting in a corporate? Does it have to create an army of metrics trackers and verifiers? How do you ensure compliance across different countries and through your supply chain? Will those countries get together to create common reporting standards?
Hosted by international affairs advisor Matthew Kirk, we were delighted to be joined by Nick Pennell, Group Programme Director at Essentra, and Hannah Kendrick, partner in our Corporate Practice.