On the early onset of this month, with the intention to stimulate more sustainable investment and help advance the mission of the UN’s Sustainable Development Goals (SDGs), the business forum organised by GRI, Principles for Responsible Investment (PRI), and the United Nations Global Compact (UNGC) published ten recommendations for companies to meet investor needs in SDG reporting. This newly published document focuses on reporting SDGs within companies which can help investors make informed sustainable decisions. In short, the report provides guidance to businesses on how to better ensure their SDG-related disclosures are useful for investors. It hopes to help mobilize the sustainable finance needed for the achievement of the SDGs, paving the path to a world where no one is left behind.
There has been a growing interest from the corporate sector on the value of non-financial information in stimulating long term business strategies and reaping profit. This report makes an effort to integrate two previously mutually exclusive ideals and amalgamate them into one concise recommendation report; the sustainable development goals and corporate reporting practices – aiming at better integration within businesses.
Excerpt from the report:
[Reporting on the SDGs can help develop instruments that leverage mainstream investment tools alongside listed equity, such as bonds and private equity. It can also help companies develop an ‘SDG impact thesis’ — an explanation on how the company contributes to the SDGs — alongside their traditional investment thesis. It is important for report preparers to know how investors are using their data, to ensure that investor needs are met, and that there is full understanding of the potential consequences of reporting. For that, it is helpful for companies to recognize the different types of data users in the investment community and the strategies they employ. This will allow companies to effectively link their SDG-related reporting and ensure better alignment with investors’ needs.]
Read the full report at: [https://www.globalreporting.org/resourcelibrary/addressing-investor-needs-SDGs-reporting.pdf]
The report not only recommends, but highlights the need for sustainable reporting practices and emphasizes why the SDGs in specific can help businesses better set a metric for sustainable investment practices. The publishing of this report is definitely a positive move forward and should be better enforced for local business governing bodies to use as guidelines for companies that fall under their jurisdiction.
