Biola (Bee as she is fondly called) is a young accountant with three years of experience in financial reporting and auditing. She enjoys her work but begins to notice a trend.
Clients are asking about sustainability, carbon footprints, and ESG (Environmental, Social, and Governance) reporting. At first, she ignores it, thinking, "This has nothing to do with accounting."
But during an audit at a manufacturing company, she overhears a conversation that changes her perspective.
The company’s CFO mentions that investors are requesting ESG reports before approving funding.
Biola starts to wonder if this the future of accounting!
What really is ESG Reporting?
ESG (Environmental, Social, and Governance) reporting is the process of disclosing a company’s impact in three key areas:
1. Environmental (E): How the company affects the environment (e.g., carbon emissions, energy use, waste management).
2. Social (S): How the company treats employees, communities, and customers (e.g., diversity, human rights, labor practices).
3. Governance (G): How the company is managed and led (e.g., ethics, board diversity, anti-corruption policies).
It helps investors, regulators, and stakeholders assess whether a business operates responsibly and sustainably
Why is ESG Reporting Important?
Attracts investors who prefer companies with strong sustainability and ethical practices.
Builds trust with customers, employees, and the public.
Ensures compliance with growing global regulations on sustainability.
Reduces risks related to climate change, labor disputes, and corporate scandals.
Examples of ESG Metrics in Reports
👉 Environmental: Carbon footprint, energy efficiency, renewable energy use.
👉 Social: Employee diversity, fair wages, workplace safety.
👉Governance: Board structure, anti-bribery measures, executive pay transparency.
Who Needs ESG Reporting?
🟢 Large corporations and multinationals.
🟢 SMEs looking for sustainable financing.
🟢 Companies seeking investment from ESG-conscious investors.
🟢 Businesses in industries with high environmental or social impact (e.g., manufacturing, energy).
This is our starting point to learn about ESG Reporting
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