Issue link: https://resources.tangoanalytics.com/i/1508314
WHY PRIORITIZE REPORTING C O M P L I A N C E & R E A D I N E S S R I S K M A N A G E M E N T Comply with rapidly changing rules and regulations By systematically assessing and reporting on ESG factors, businesses can identify potential risks and opportunities, allowing them to manage these aspects more effectively with action plans and improve their long-term resilience. I N V E S T O R T R A N S P A R E N C Y Effective disclosure of climate-related risks and emissions data enables stakeholders to make more informed asset allocation decisions about their investments, purchases, and employment choices when they can better understand a company's position. B R A N D R E P U T A T I O N Reporting demonstrates a company's commitment to responsible business practices, which can enhance more intangible benefits such as stakeholder confidence and trust, corporate reputation, and the dialogue between companies and consumers. K E E P I N G U P W I T H C O M P E T I T O R S Around 80% of companies worldwide now voluntarily report on sustainability, according to KPMG. A C H E I V I N G S U S T A I N A B I L I T Y G O A L S Emissions or other KPI goals are nearly impossible to meet or track without consistently reporting on them to measure progress over time. I N F O R M E D D E C I S I O N M A K I N G Providing new information to support management decision-making, employee education, and exposing gaps in operational efficiency such as with energy saving. R O I O P P O R T U N I T I E S Reporting frameworks can help businesses realize opportunities presented by the global energy transition and identify long-term strategic priorities for greater return on investment over time. Shifting societal preferences and investing patterns are resulting in increased capital flows toward sustainable assets with huge swaths of money flowing toward the transition to a low-carbon economy, including through the Inflation Reduction Act and through private capital. L A Y I N G T H E G R O U N D W O R K Reports can enable markets to price the financial impact of climate risk more accurately, which in turn can reallocate capital to the companies poised to navigate or capitalize on the transition to a low-carbon economy. Also, asking suppliers year on year to report on their emissions can cause ripple effects down the supply chain, driving greater transparency and data availability around environmental action from more industries. Sustainability & Energy Management Simplified