Enlightened Evaluation: For Future-Forward Disclosures
The typical ESG and Sustainability disclosure, ranging from 100 to 300 pages, often contains redundant information, forcing readers to sift through to unearth valuable insights. Occasionally, even after a thorough read, they may not find the specific metric needed for comparison with industry peers.
Consider the Herculean task of scrutinizing each new ESG and Sustainability disclosure from every company listed on the S&P 500. In order to succeed, stakeholders would require a method to swiftly evaluate and compare information, enabling informed decision-making and efficient progression to decision-making, most importantly, the decision of where to put their investment.
With the establishment and mandatory adoption of standards, the influx of data into regulatory systems will dramatically increase, and this information will be heavily scrutinized. This topic was addressed in my article "Data, Disclosure, and the New Dawn of Leadership" in ESG Today, where I discussed the ISSB's sustainability disclosures, which are now incorporated into the SEC's proposed climate-related rule, acknowledging the TCFD framework within the ISSB standards.
“Many companies are now faced with assessing and disclosing their vulnerabilities and dependence, specifically when it comes to their reliance on the world’s resources and their most valued business relationships. A company’s inaugural IFRS disclosure will arguably be one of the most significant contributions its CEO will make in the upcoming years, with annual reporting periods to begin as early as January 1st, 2024 in some jurisdictions.”
The imperative for companies is to either radically simplify disclosure processes or employ AI to render them manageable.
At 7 Centre, we’ve developed ESEF (ESG and Sustainable Engagement Framework), specifically for this purpose. It’s a tool that enhances the evaluation of disclosures and sustainable engagement by concentrating on seven essential pillars of disclosure quality and measuring stakeholder engagement factors. It skillfully navigates through climate and sustainability risks, opportunities, metrics, and objectives, offering a transparent and user-friendly platform for data-centric decision-making. The ESEF empowers your ESG and sustainability initiatives, simplifying complexities to enable assured choices.
The ESEF, born from deep industry knowledge, meets the immediate demands of investors and businesses. It enables investors to quickly appraise disclosures, freeing them from the tedious chore of sifting through copious pages for crucial insights. For companies, it represents a significant advantage by streamlining industry analysis, peer benchmarking, and promoting agility to maintain a competitive edge. This signifies a transformative phase in ESG disclosure evaluation.
Our sole aim is to assist in the acceleration and enhancement of decision-making, making the overwhelming amount of data manageable, thereby allowing us to concentrate on refining our business models toward greater sustainability and a more livable world.
