THOUGH NOT EXACTLY PAGE turners, corporate sustainability reports are must reads if you want to align your investments with your values. A sustainability report goes beyond traditional financial numbers to highlight a company’s ESG goals and practices, such as steps taken to reduce carbon emissions, close the gender pay gap or boost the number of minorities on the board.
The report also identifies the ways that broad ESG trends may impact a firm’s long-term strategy and outlook, letting stakeholders know the risks and opportunities around ESG, says Maura Hodge, national ESG assurance leader for accounting firm KPMG. “Readers should look to see if the company has embedded ESG into its core business activity,” she says.
A firm’s ESG record has emerged as a key input when choosing investments. U.S. asset managers now manage more than $17 trillion using ESG strategies, up 42% from the start of 2018, according to the Forum for Sustainable and Responsible Investment. And investors are pressuring firms to provide more data and transparency around ESG. Nine out of 10 S&P 500 companies now publish sustainability reports, up from 20% in 2011, according to the Governance & Accountability Institute, a sustainability consulting firm.
Currently, sustainability reports are published voluntarily and measure progress on ESG goals based on standards and metrics developed by nonprofits and independent groups, such as the Value Reporting Foundation, which oversees the Sustainability Accounting Standards Board (SASB). The Global Reporting Initiative (GRI) and the Task Force on Climate-Related Financial Disclosures (TCFD) are others.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.
