ESG Reporting
Disclosure of a company's environmental, social, and governance performance to investors and stakeholders.
What is ESG Reporting?
ESG reporting refers to the structured disclosure of a company's performance across three dimensions: environmental (carbon emissions, water use, waste), social (labor practices, diversity, community relations), and governance (board structure, executive pay, shareholder rights). Key voluntary frameworks include the Global Reporting Initiative (GRI), SASB Standards, and the Task Force on Climate-related Financial Disclosures (TCFD). The IFRS Foundation established the International Sustainability Standards Board (ISSB) in 2021 to develop globally consistent standards. The SEC has proposed mandatory climate disclosure rules for US public companies. ESG report quality varies widely, and standardization remains an active area of regulatory development.
Example
Apple publishes an annual Environmental Progress Report and a People and Environment in Our Supply Chain report, disclosing metrics on carbon emissions, renewable energy use, supplier labor audits, and diversity data. These reports align with GRI Standards and the TCFD framework and are reviewed by Apple's board audit committee.