ESG reporting

ESG reporting currently varies widely from case to case. To encourage its development and sustained use on a large scale, three conditions are essential: standardisation, comparability and materiality.

Corporate Social Responsibility (CSR) reporting is now in widespread use by companies.

From investors point of view, Europe and France in particular are considered pioneers in ESG reporting. In 2015, France passed its law on the energy transition for green growth and became the first country to require that investors communicate on their ESG practices and how they integrate climate risks into their investments.

At the European level, in 2018 the Commission presented its action plan for sustainable finance. This plan is scheduled to come into force by 2022, with the implementation of the following actions:

a single classification system defining sustainable activities;

the creation of European green labels based on the classification system;

the obligation for asset managers and institutional investors to factor sustainability aspects into their investment process and to disclose information in full transparency;

the integration of sustainability in prudential requirements for banks and insurance companies (the green factor).

This context has led to significant progress in standardisation of extra-financial disclosures.

ODDO BHF AM 2020

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