How can ESG reporting help employers?
New environmental, social and corporate governance (ESG) reporting and climate disclosures will be required of Canadian employers starting this year, but the majority of them are not prepared, according to a report.
About three-quarters (74 per cent) of employers admit it’s a challenge to put these mandates into action, and 53 per cent are unprepared to manage ESG regulatory changes, reports Enterprise Ireland.
This is the case even though 84 per cent of Canadian business leaders agree that ESG principles are an important part of their corporate policy.
“In a rapidly evolving global landscape, investors, consumers, and governments are calling on businesses to prioritize ESG, which opens a significant opportunity for Canadian organizations to bolster their offerings and remain competitive,” says David McCaffrey, Country Manager at Enterprise Ireland Canada. “By taking a meaningful approach to ESG principles, these companies will also get ahead of impending domestic reporting requirements and comply with existing regulations in several global markets.”
Last year, HRD launched its very first ESG Summit to inform and educate HR leaders and senior legal practitioners on the impending changes coming to Canadian sustainability reporting.
Roadblocks to implementing ESG strategies
Resource constraints (42 per cent) are a major factor making it difficult for employers to implement ESG initiatives, finds Enterprise Ireland’s survey of 332 senior decision makers and above, conducted Aug. 8-17, 2023.
These include the adoption of technology to help them achieve their goals, capture data and report on progress.
Also, four in 10 lack the tech needed to deliver and measure ESG initiatives, and only one-third have a dedicated ESG role or department.
More companies are recognizing the positive business case for ESG – and HR can help, according to a previous report.
PwC stressed this in a previous report.
“Producing trusted ESG reporting that meets stakeholders’ climate expectations and new regulatory standards involves assessing your material topics. It also requires pinpointing the related risks and opportunities, and producing metrics and targets that show how you manage those risks and opportunities,” it says.
“ESG reports should show your performance against specific ESG initiatives and commitments that connect to your enterprise strategy and management of sustainability-related risks and opportunities. Establishing this connection lets you create business and stakeholder value from your integrated strategy and then communicate it through your sustainability reporting.”
