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Report: Stark Gap in Climate Disclosures Exists Between Large & Small Public CompaniesNEW YORK, Jan. 20, 2022 /PRNewswire/ -- Amid growing expectations from regulators and investors, a new report reveals a stark gap between the climate disclosures of large and small companies. Indeed, larger firms disclose greenhouse gas (GHG) emissions at 2.5 times the rate of smaller firms. Produced by The Conference Board in collaboration with Heidrick & Struggles and ESG data analytics firm ESGAUGE, Sustainability Disclosure Practices 2022 Edition: Getting Off the Sidelines examines corporate disclosure and performance data of US publicly traded companies, including the Russell 3000, S&P 500, and S&P MidCap 400. The report is accompanied by an online dashboard to analyze and create reports on the data by index, sector, and company size. "Companies that have not been addressing climate, diversity, and other key sustainability issues in their public-facing communications should take a fresh look at whether to do so," said Thomas Singer, Principal Researcher at The Conference Board ESG Center and the report's lead author. "More and more, these disclosures are expected by key stakeholders who can influence the company's reputation and bottom line. Smaller companies that have not yet prepared climate disclosures will inevitably face greater pressure to do so, not least because the SEC is expected to propose rules on climate disclosure early this year." The report also notes an increase in the number of companies obtaining external assurance for their sustainability information, with larger firms six times more likely to do so compared to smaller companies. CEOs and their management teams should anticipate that investors, lenders, credit rating agencies, ESG ranking firms, business partners, and regulators will increasingly expect assurance. Firms that begin to phase in assurance now can do so more strategically and efficiently than if they wait for regulatory mandates, including reporting standards being developed by the International Sustainability Standards Board (ISSB), the formation of which was announced at COP26. Insights from the report include: Larger firms disclose greenhouse gas (GHG) emissions at 2.5 times the rate of smaller companies.
Companies need to assess their exposure to water risks, as the financial cost of inaction can significantly outweigh the cost of mitigation.
"In 2022, boards of directors and CEOs will be increasingly focused on how to advance corporate ESG goals for their organizations, ensuring they have in place a strong foundation and are taking the necessary steps to drive meaningful, sustainable change and impact," said Jeremy Hanson, a partner in the global CEO & Board of Directors Practice and co-lead of the global Sustainability Office at Heidrick & Struggles. "We also expect to see more emphasis on disclosure and measurement as ESG reporting and metrics affect the terms on which a company can access capital in the future. Going forward, the ability to show concrete results and precise data, while also being clear on where a company stands in addressing sustainability issues, is going to be a duty for every board, CEO, and organization, regardless of size or sector." In 2021, compared to 2020, there were three times as many voted shareholder proposals filed on board and workplace diversity.
Larger companies verify their sustainability information through external assurance at six times the rate of smaller companies.
About The Conference Board About The Conference Board ESG Center About Heidrick & Struggles View original content to download multimedia:https://www.prnewswire.com/news-releases/report-stark-gap-in-climate-disclosures-exists-between-large--small-public-companies-301465038.html SOURCE The Conference Board |