INTEGRATED THINKING FOR SUSTAINABLE BUSINESS MANAGEMENT

The growing emphasis on and interest in ESG reporting standards by such organizations as the International Sustainability Standards Board and the U.S. Securities & Exchange Commission (SEC) mean that corporate reporting characterized by a focus on financial performance and a lack of information on corporate strategy and nonfinancial performance is becoming less fit for the purpose of adequately informing stakeholders. From a governance perspective, a company's board of directors isn't representing shareholders if it fails to consider the impact of social and environmental factors as well as the (economic) tangibles and intangibles that contribute to the ability to sustain the enterprise. A benefit of integrated reporting is connecting the company's mission; corporate governance; and its financial, social, and environmental performance to help internal and external users make better decisions and focus on long-term value creation, all while providing greater transparency to external users so they can better evaluate the actual operation and performance of the organization in the short, middle, and long term. According to The Reporting Exchange, there are more than 2,200 ESG reporting provisions by regulators across more than 70 countries, more than 1,400 key ESG indicators, and more than 1,100 organizations involved in the development of ESG frameworks and initiatives.