In the July 2022 edition of The Economist, a special report covers the importance and failures of ESG reporting.
In the opening article In Need of a Clean-up they discuss a report referencing a case where 50 German police investigators and regulators, acting on allegations of 'greenwashing', raided the offices of Deutsche Bank in Frankfurt.
Their focus was on the extent to which they may have misstated its use of environmental, social and governance criteria in its investment portfolio.
In the commentary that followed, The Economist made the assertation;
“It is the contention of this report that, from impact to measurement to disclosure, much of ESG is deeply flawed.”
This report is another discussion that raises questions around how we meet ESG standards effectively and professionally.
How do we redefine excellence based on new ESG standards, and the importance of transparency and reporting?
It's about communicating what organisations are doing to build trust, and showing consumers that business practices are leading to a sustainable future.
World leaders and experts need to talk about the importance of professional auditing and reporting, examine models of ESG, and explore case studies of local and international deployment.
Whilst it is important for business to know about the new ESG standards, it's even more important to know how to measure and manage their organisations against these.