Non-Financial Reporting, ESG reporting is the reporting in which an organisation transparently presents its operational data on environmental, social and governance aspects to its stakeholders.
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 2021 Global Risks Report published by the World Economic Forum, environmental issues are among the highest risks in terms of impact and probability increase for the next 10 years. This situation shows that non-financial indicators of companies can also lead to economic results and directs companies to disclose, manage and control their social and environmental impacts.
Similarly, in Turkey, with the announcement made by the CMB in 2020, the principles that publicly traded companies are expected to follow and comply with while operating in environmental and social areas have been announced.
In addition, ESG processes are encouraged within the scope of the United Nations Principles for Responsible Investment, and both the number of signatories and the amount managed are increasing every year. ESG activities are related to the United Nations sustainable development goals of ‘responsible production and consumption’ and ‘climate action’.
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 2021 Global Risks Report published by the World Economic Forum, environmental issues are among the highest risks in terms of impact and probability increase for the next 10 years.
This situation shows that non-financial indicators of companies can also lead to economic results and directs companies to disclose, manage and control their social and environmental impacts. Similarly, in Turkey, with the announcement made by the CMB in 2020, the principles that publicly traded companies are expected to follow and comply with while operating in environmental and social areas have been announced. In addition, ESG processes are encouraged within the scope of the United Nations Principles for Responsible Investment, and both the number of signatories and the amount managed are increasing every year. ESG activities are related to the United Nations sustainable development goals of ‘responsible production and consumption’ and ‘climate action’.
Non-Financial Reporting, ESG Reporting for Transparent Sharing
By disclosing environmental, social and governance related information in a report, the company’s progress in these areas can be viewed against benchmarks and targets. In this way, communication and information sharing are made with many stakeholders, including investors, employees and customers. Transparent reporting also fosters the accountability needed to develop collaboration and actionable solutions.
You can get support from our experts on Non-Financial Reporting (ESG).
Meet our Non-Financial Reporting (ESG) Consultants
Orhan Atacan
Sustainability Manager
Gülbahar Korkusuz
Senior Sustainability Advisor
Orhan Atacan
Sustainability Manager
Gülbahar Korkusuz
Senior Sustainability Advisor
Emel Güner
ESG Consultant
What is Non-Financial Reporting, particularly in relation to Environmental, Social, and Governance (ESG) factors?
Non-Financial Reporting involves disclosing information about an organization’s environmental, social, and governance (ESG) performance alongside traditional financial reporting. ESG factors encompass various considerations, such as environmental impact, social practices, and governance structures.
What are the key components of Non-Financial Reporting on ESG factors?
Non-Financial Reporting on ESG factors covers multiple aspects, including environmental performance (such as carbon emissions), social performance (like labor practices), governance practices (including ethics and compliance), materiality assessment, and stakeholder engagement.
Why is Non-Financial Reporting on ESG factors important for organizations?
Non-Financial Reporting offers several benefits, including enhanced transparency and accountability, improved risk management, stakeholder engagement, competitive advantage, and value creation. By disclosing ESG information, organizations can build trust, manage risks, and identify opportunities for sustainable growth and innovation.