Leaders of Big 4 firms Deloitte, PwC, EY and KPMG have thrown their support behind a proposed reporting framework for environmental, social and corporate governance (ESG) standards, according to a recent story in the Financial Times. If successful, the initiative would mark the first coordinated approach to ESG reporting.
At the invitation of the International Business School (IBS), the four firms were asked to identify a set of universal ESG metrics and recommended disclosures that could be reflected in the mainstream annual reports of companies. The resulting proposal includes 21 core metrics and 34 expanded metrics and disclosures, and outlines four pillars – principals of governance, planet, people and prosperity – that firms can use to approach ESG reporting standards.
“Right now, there is an alphabet soup of metrics,” Deloitte global chief executive Punit Renjen was quoted as saying in the FT story. “It is important for us to have a common set of standards and if there is widespread adoption it will lead to changes in behavior.”