Note: In this conversation, we use the terms “CR,” “Sustainability,” and “ESG” interchangeably.
JS: My recommendation is to include the legal team as early as possible in reporting discussions so they can see what information you want to share and get their buy-in early in the process. They are often left out of sustainability reporting committees and of the decision-making process. Having them involved helps politically and practically.
You can also help gain their support for disclosure by sharing benchmarking of reporting from others in your sector. If the majority of companies are disclosing X, you can ask “Why not us?” You can also engage in a discussion on the risk of not sharing the information versus the benefit. Yet, another point of leverage might be that disclosure can help you do better on your MSCI score, which can result in investors being more favorable to your company. This could even translate into a financial benefit.
MK: What is your perspective of assurance of reports?