⚖️ "There's a danger that #CSRD leads to an unbalanced picture of a company's risk being presented."
I spoke to Natalie Runyon from the Thomson Reuters Institute, about the findings of SB+CO’s latest practitioner research:
1️⃣ Companies do certainly face serious systemic risks from a range of ESG issues from the climate and biodiversity crisis, through to the social transitions that we've seen dictate the political shifts across the globe. The #doublemateriality process does offer a valuable route for businesses to better understand these.
2️⃣ CSRD creates a hugely complex network of disclosure requirements leading to lengthy mandatory disclosures (amongst early reporters, the average disclosure was 73 pages!). This creates a danger that corporate disclosures on some ESG risks could far exceed transparency on other (potentially more significant) risks the business faces, presenting a skewed picture to investors.
3️⃣ CSRD should be about helping companies to communicate a clear but balanced story, showing the journey of the companies exposure to ESG challenges, how it manages those today, and its plan for the future. But that doesn't mean it should be the only sustainability communication. One thing we heard loud and clear: "CSRD is not our impact story!"
A joy as ever to collaborate with Phoebe Whittome on this research, and a big thank you to all the practitioners we spoke to throughout.
Nick Wyver | Nigel Salter | Kate Jones | Penny Baxter
Transformation, innovation, sustainable business build; Non-Executive Board Member, Advisory
2moThanks to my go-pannelists - I learned a lot and enjoyed the session with you!