The fast-emerging statutory ESG frameworks and regulations are having far-reaching compliance implications for business and society at large. What companies say can provide great insight into what they do. The way they describe how they are monitoring and addressing sustainability issues, including those related to environmental, social and governance (ESG) matters, through mandatory reporting or voluntary statements can be a lever for building trust with those around them.

Companies with a strong ESG track record instill a sense of confidence and belief in investors, employees, suppliers, and business partners. This trend is likely to intensify with greater levels of social and environmental awareness. Competitors that fall behind in upholding the ESG factors that are increasingly important to investors, the government, and society, risk facing a critical business risk. With a growing gap between the values of those stakeholders and the business practices of such companies, could encourage many stakeholders to look for opportunities to work with and invest in companies with better ESG records. Corporates are required by their stakeholders and customers to move beyond setting long term sustainability goals and to be able to demonstrate with ongoing regular evidence that they are moving in the right direction within the ESG framework.