Companies disclose their environmental and social activities along with their economic activities through non-financial reports. Concepts such as the increase in the negative effects of climate change, the tendency to manage and control environmental processes, transparency, and respect for human rights have led to an increase in non-financial reporting practices in recent years. In the Global Risks Report published by the World Economic Forum, environmental issues are in the highest risk category in terms of impact and probability increase for the next decade. This shows that companies’ non-financial indicators can also lead to economic results and directs companies to explain, manage and control their social and environmental impacts.
ESG processes are encouraged within the scope of the United Nations Responsible Investment Principles, and an increase is seen year by year both in the number of signatories and in the amount of money managed. ESG studies are related to ‘responsible consumption and production’ and ‘climate action’ in the UN Sustainable Development Goals.
You can also share your company’s current situation and improvements with your investors or stakeholders by using ESG reporting and making environmental, social and governance evaluations of its activities or investments.
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