Emerging Trends in Environmental, Social, and Governance Data and Disclosure: Opportunities and Challenges
Originally Appeared in Private Sector Opinion 32 from the International Finance Corporation
An old management adage says you get what you measure. That’s why any decent MBA program will ensure that its students graduate with a keen knowledge of both management and financial accounting. The rationale is that every manager should not only know how profit is generated, but also be able to report on it to investors, regulators, and other stakeholders.
Few of us today doubt the significance of the environmental and social pressures the world is under. Nor can we doubt the significance of private sector activity both in generating these difficulties and in helping resolve them. Yet there is still no mandate enforcing either the measurement or the disclosure of sustainability...