DFIN Survey Reveals Gaps in Implementation and Reporting of Environmental, Social and Governance Issues
July 09 2019 - 8:00AM
Business Wire
Despite environmental, social and governance issues rising to
the forefront of Fortune 500 companies’ corporate strategies due to
growing interest from institutional investors, gaps still exist
within the implementation and reporting of these ESG initiatives,
according to new data released today by Donnelley Financial
Solutions (NYSE: DFIN), a leading global risk and compliance
company. In recent years, companies have begun disclosing their ESG
strategies to allow institutional investors to assess risk and make
decisions, but many are just beginning their sustainability
journeys.
Based on a recent survey, only 27% of companies have an ESG
materiality assessment process, and less than half (41%) produce a
corporate responsibility, corporate social responsibility or
sustainability report. Furthermore, roughly one-third of the
surveyed businesses (32%) said their board of directors has no
oversight of ESG matters. Prominent ESG issues include, but are not
limited to: climate change and environmental risks and
opportunities, human capital management and corporate governance
factors, such as board strategy and executive compensation.
“ESG initiatives and reporting have continued to gain importance
in the investment decisions of the world’s largest institutional
investors over the past decade. The power of ESG is only beginning
to be unlocked as companies realize ESG risk equates to financial
risk,” said John Truzzolino, director of Business Solutions at
DFIN.
DFIN has also partnered with the Governance & Accountability
Institute, Inc., a recognized leader in corporate sustainability,
to offer clients an expanded suite of solutions to begin, or
advance and enhance their ESG initiatives and reporting.
“Every company is on its own unique sustainability journey.
Together with DFIN, we are helping clients more effectively report
decision-useful sustainability data by applying global ESG
reporting frameworks. These standards are often used by rating
services to measure progress against a wide range of unfolding
issues,” said Hank Boerner, chairman and CEO, Governance &
Accountability Institute, Inc. “By implementing these solutions,
clients can plan today for their long-term strategic goals.”
In DFIN’s recent white paper, “ESG Risks and Opportunities:
Understanding the ESG Landscape,” the company identifies and
analyzes four critical steps to measure, manage and communicate an
ESG risk and long-term business strategy:
- Navigate ESG issues by performing a company-wide ESG
materiality assessment
- Build a map to identify available company data, and
assign internal subject owners to develop decision-useful
disclosures
- Follow the ESG disclosure path by using company-specific
KPIs to articulate ESG strategy
- Reach ESG goals by effectively communicating ESG risks
and long-term business strategy to shareholders, via appropriate
channels
This quantitative survey of 100 senior leaders in
sustainability, investor relations legal affairs, corporate social
responsibility and strategic planning was conducted on May 2 by
DFIN.
For more information and to view the full white paper, please
visit DFIN’s website or contact a DFIN representative.
About Donnelley Financial Solutions (DFIN)
DFIN is a leading global risk and compliance solutions company.
We provide domain expertise, enterprise software and data analytics
for every stage of our clients’ business and investment lifecycles.
Markets fluctuate, regulations evolve, technology advances, and
through it all, DFIN delivers confidence with the right solutions
in moments that matter. Learn about DFIN’s end-to-end risk and
compliance solutions online at DFINsolutions.com or you can also
follow us on Twitter @DFINSolutions or on LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20190709005175/en/
Media Contact: Erin Burke 631 239 6903
eburke@Stantonprm.com
Investor Contact: Justin Ritchie Investor Relations
investors@dfinsolutions.com
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