A fund manager said the Covid-19 pandemic had increased the importance and role of ESG compliance.
PETALING JAYA: As environmental, social and governance (ESG) compliance becomes more mainstream, and even a benchmark for investors today, corporations are increasingly faced with the arduous task of meeting challenging reporting demands.
An analyst noted that ESG metrics such as waste, energy and carbon can be challenging to quantify and report.
“It’s difficult because there isn’t one global standard and even if there were, it’s constantly changing and evolving,” he said.
Deloitte, in a paper titled “ESG Risks: The Reporting Challenge”, said changes in investors’ and society’s expectations have translated into a growing demand for better corporate reporting that responds to the need to understand broader risks and business impacts.