Reporting & Rating
Reporting & Rating
Sustainability reporting is already an integral part of many business entity’s communications strategy today.
Reporting on sustainability is now an integral part of communication.
Sustainability reporting is shaped by numerous initiatives and frameworks, such as the Global Reporting Initiative (GRI) G4 Guidelines or the Integrated Reporting Framework of the International Integrated Reporting Council (IIRC).
Sustainability performance and placement in SRI ratings is increasingly a decisive factor in terms of demand for corporate securities on the capital markets and thus an important aspect in enhancing the reputation of business entities.
What are the challenges in implementing reporting?
Targeted and successful sustainability reporting involves identifying and presenting the key issues that are of concern to the business entity and its stakeholders. Successes achieved as well as mistakes and errors made should be presented openly and in a balanced way. Furthermore, stakeholders are calling for increased transparency on corporate impacts along the value chain. Capturing and, in particular, quantifying these presents a significant challenge for business entities.
Is sustainability important in the capital market?
Various developments suggest that environmental, social and governance (ESG) disclosures have become very important for players in the capital markets. This can be observed in the area of responsible investments as well as for mainstream investors. While some investors also want to contribute to sustainable development through their investment, mainstream investors consider ESG performance as an indicator of the management quality of the investment. The initiative of the United Nations Principles for Responsible Investment (UN PRI), or even the fact that important analysts such as Bloomberg, MSCI or Thomson Reuters all offer an ESG data service, may be mentioned here as examples. The Carbon Disclosure Project (CDP) also requests information on climate change on behalf of financial institutions.
We are happy to support you in
- analysing material sustainability aspects for reporting and preparing sustainability reports and information
- developing and implementing stable systems, quality-assuring processes, standards and guidelines for reporting
- linking sustainability reporting with financial reporting
- further developing integrated reporting (e.g. according to the IIRC framework)
- selecting suitable software solutions
- identifying relevant ratings and company-specific prioritisation
- providing support in meeting the requirements of various ratings and evaluating the results (e.g. Dow Jones Sustainability Index or Carbon Disclosure Project)
KPMG has many years of experience in advising on sustainability reporting and ratings. Our staff have proven expertise in various national and international sustainability initiatives and organisations. KPMG in Germany is part of KPMG’s global Climate Change & Sustainability Services network and supports you worldwide.
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