Speaking of saying less about sustainability… Bloomberg reported last week that
“Nike joins a growing list of companies that includes JPMorgan Chase & Co., Constellation Brands Inc. and Akamai Technologies Inc. that are either canceling or delaying publication of their so-called sustainability or corporate impact reports for shareholders.
‘The consequences of reported information are much greater now than they were a decade ago,’ said Martin Whittaker, chief executive officer of JUST Capital, noting that both progressive and conservative activists are searching for evidence of companies’ missteps.
Whittaker estimates that about 25% of sustainability-related corporate reporting is behind schedule this year.”
At least some pro-ESG NGOs are worried about risks of the disclosures – odd bedfellows for many companies:
“Andrew Behar, CEO of As You Sow, which supports social responsibility, said executives have been asking him privately for some flexibility in what information they release this year.
‘We told them to not put themselves at risk right now,’ Behar said. ‘That isn’t good for anyone.’”
There are competing priorities here. On one hand, companies publishing sustainability/DEI reports may be subject to EU CSRD reporting (i.e., not discretionary), are “doing the right thing,” and meet general public and sometimes investor demands. On the other hand, as the article points out, there are increasing risks/consequences of doing so – particularly if the reports are voluntary, or at least some of the content.
Theoretically, companies conduct materiality assessments – either double or financial only – as a basis for corporate reporting. How often is reporting itself assessed for materiality? Might be worth considering. I’ve written before about Robert Eccles and Tim Youmans 2015 “Statement of Significant Audiences and Materiality” to specifically clarify the primary intended audiences for ESG reporting and context for materiality determinations – it can also be used to evaluate the importance of voluntary disclosures to begin with.
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