IOSCO issues statement on reporting about environmental, social and governance (ESG) matters
The International Organisation of Securities Commissions (IOSCO) has published a statement setting out the importance for issuers of considering the inclusion of environmental, social and governance (ESG) matters when disclosing information material to investors’ decisions.
The statement notes that disclosure of ESG information has increased in recent years, reflecting the increasing importance placed on it by investors, particularly in connection with determining investment strategy and voting decisions.
There have been calls by some investors for enhanced reliability and comparability of ESG information and disclosures to facilitate a more accurate assessment of risk and, accordingly, more informed investment decisions. This would require a certain level of standardisation of the content of such disclosures, as well as raising the issue of whether they should be subject to some level of assurance review by auditors.
The full statement can be viewed here.