An important characteristic of financial information is Relevance. Relevance relates to information that users need and is expected to affect their decisions about a company. Relevance is also critical when it relates to reporting on the non-financial data of a company.
The expectations of financial markets are changing. Investors increasingly want to see the non-financial data of a company related to environmental, social, governance (ESG) performance. However, due to the lack of a standardized set of frameworks and guidance for reporting ESG data, many companies fall into disclosure overload and the information lacks quality, comparability and usefulness for a range of stakeholders.
At ESG Lynk, we focus on a higher quality of ESG reporting, which we refer to as Relevant Sustainability Reporting™ that uses a company’s business strategy as the foundation to link its ESG data to financial performance. A focus on Relevant Sustainability Reporting validates a company’s commitment to ESG principles and communicates sustainability as a priority. This approach allows for the seamless integration of familiar business activities and metrics and delivers the information users need in a comparable, verifiable and decision-useful way.