FRC recommends action for effective ESG reporting
The Financial Reporting Council (FRC) has said that changes are needed to make environmental, social and governance (ESG) reporting effective.
The FRC published its Statement of Intent on Environmental, Social and Governance challenges this week. The statement sets out areas in which there are issues with ESG information if companies are to report in a way that meets the demands of stakeholders, how to address some of these demands, and the FRC’s planned activities in this area.
The report sets out the areas that, in the FRCs view, need improvement including: audit and assurance, so that reported information in robust and reliable; distribution, to ensure that information if made accessible to interested parties; and supervision, so that information and activity is appropriately monitored.
The report also identifies the “ever-increasing” amount of regulatory change and the underlying issues that persist as the changes are implemented.
The full report can be found here.