The Principles for Responsible Investment Initiative and Ceres’ Investor Network on Climate Risk, in partnership with the UN Environment Programme Finance Initiative, have drafted an open letter to the International Organization of Securities Commissions, highlighting the role the organization can play in improving the availability and quality of environmental, social and governance information in the marketplace.
Investors who sign the letter express their concern about the lack of rigorous ESG disclosure, which they say is a growing risk that needs to be addressed.
While many companies globally are reporting on some ESG factors, the current state of corporate disclosure is not sufficient to meet investor needs for more consistent material sustainability information, the Global Reporting Initiative says.
GRI says it encourages investors to support the global debate on the need for more ESG information. Investors need a critical mass of relevant and comparable data presented in an accessible way in order to help inform their investment decisions. GRI’s G4 Guidelines are the tool used by many companies worldwide to provide a full picture of their impacts and to help inform investors, the organization says.