Requirements for sustainability reports have been multiplying, often unbeknownst to companies. The White House just announced 68 new signatories to federal climate action programs. The EU is now extending the scope of reporting beyond carbon to human rights. Even China is entertaining a cap and trade scheme.
Challenge: Unlike the past, skirting sustainability requirements leads to more than just a slap on the hand. Rankings and indexes such as the DJSI, GICS and STOXX have become important to company valuations. Google Finance now shows a publically traded company’s CDP score alongside its stock price — one of several key performance metrics. Meanwhile, third-party audits and journalists have added an extra layer of scrutiny to the data behind these indexes. Just look at Volkswagen to see what can happen when a company releases incorrect or inaccurate reports.
Solution: Integrated systems that supply reliable, verifiable data will make audits easier and mistakes less likely.
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