How ESG Metrics will Evolve After COVID-19?
While COVID-19 contributed to mainstream ESG disclosure, it also highlighted weaknesses in the data, metrics and methodologies used by companies, posing a question on the quality and reliability of the investment decision.
Join our upcoming webinar “Which ESG metrics will survive COVID19?” on July 9th to discover best practices in ESG corporate reporting and what the EU is doing to standardise ESG metrics.
The COVID-19 pandemic has abruptly highlighted the value of companies’ Social practices. As employees’ health and safety became a sudden priority, companies with strong ESG integration fared better than others. However, while the coronavirus consolidated ESG investment as the fastest growing area in finance, it also highlighted the methodological weaknesses in companies’ ESG reporting practices.
The frequent inconsistencies in ESG data and measures used by companies in their reporting practices are posing a threat to the quality and reliability of a company’s performance assessment and investment decisions.
As Europe is kickstarting its socio-economic recovery, how to standardise ESG metrics and harmonise companies’ ESG reporting? The European Union has already started addressing the issue.
This month, the Commission closed the public consultation for the review of the Non-financial Reporting Directive, aimed at:
Defining the best process for the harmonization of companies’ ESG reporting to fulfil the data gap
Creating a single ESG reporting framework that can improve the disclosure of non-financial information
Still open is the European Supervisory Authority’s public consultation to review the Regulatory Technical Standards of the Sustainable Finance Disclosure Regulation (SFDR) with regards to the content, methodologies and presentation of sustainability-related disclosure. As a result, the SFDR should harmonise ESG disclosure standards for different types of information complexity, granularity and consumer-friendliness.
To discover the impact of these changes on your company’s reporting practice, join our upcoming webinar “Which ESG metrics will survive COVID19?” on July 9th . The event, hosted in the framework of our community of practice on Sustainable Finance, will bring together investor, rating agencies, ESG data provider and green-bond issuers to discuss the evolution of ESG metrics after the shortcomings unveiled by COVID-19.
In the first panel, Patrik Karlsson, Policy officer of the European Securities and Markets Authority (ESMA), will guide us through the "European Standards on ESG disclosure".
In the second panel, moderated by Andrea Gasperini, Head of Associate in Insurance Accounting and Finance (AIAF) Sustainability department and EFRAG, we will address with leading companies such as Enel, Moody’s, State Street and Datamaran, the "Materiality assessment and ESG metrics post COVID19".
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