The black and white case for impact-focused corporate reporting

The priority for many investors is first and foremost about enterprise value, not sustainability.

Yet guidance on what companies should report from the BlackRock’s of this world should also reflect multi-stakeholder needs for transparency on the full range of impacts companies have on people and planet. And that is so far missing.

Explaining how a company’s actions seek not only to be profitable but also to safeguard stakeholder interests is a powerful way of demonstrating the contribution to people and planet.

We support Larry Fink’s drive towards a stakeholder centric economic model. But without considering the information needs of their stakeholders, companies are faced with a credibility issue. Besides, many large businesses already voluntarily report against financial reporting standards and GRI’s (voluntary) sustainability standards. Endorsing broad sustainability reporting, as supported by the GRI Standards, would greatly support Blackrock’s stated backing for stakeholder capitalism, while it would also be appreciated by the thousands of companies that already use our standards.

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