An Evaluation of the Challenges in Reporting for Environmental Social and Governance Criteria
Open Access
- Author:
- Palmer, Alexander
- Area of Honors:
- Accounting
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Samuel Burton Bonsall, IV, Thesis Honors Advisor
Schalyn N Sohn, Faculty Reader
Samuel Burton Bonsall, IV, Thesis Supervisor - Keywords:
- ESG Reporting
ESG Framework - Abstract:
- This thesis researches the problems that currently exist with the environmental, social and governance (ESG) reporting frameworks and ways in which these frameworks can improve to provide comprehensive information for investors to utilize. There are hundreds of frameworks being utilized as companies look to provide information on their ESG actions. These frameworks each have their own niches as some focus specifically on environmental, or social issues, while others look to provide comprehensive ESG information. I began by researching major problems that the major reporting frameworks face. These include the Global Reporting Index (GRI), Carbon Disclosure Project (CDP), Sustainability Accounting Standards Board (SASB), and International Sustainability Standards Board (ISSB), and continued by providing details on the problems that have been occurring across all reporting frameworks. In addition, I conducted interviews with professionals in venture capital and private equity firms who specialize in ESG investing, and in these interviews, they provided context to the problems in the accessing of ESG information. The respondents highlighted issues they have faced with companies lacking the resources and knowledge on how to report and improvements which would improve reporting including standardization across industries and reporting requirements for all companies to allow for more informed investment decisions. With the development of these frameworks there is significant room for growth; however, with improved ESG frameworks investors will be able to make informed decisions while promoting sustainability, social progress, and good governance.