Changing Regulations
Ten years ago, sustainability reporting was a well-intentioned supplement to the annual report, on the outside of corporate communication, unrelated to the data that truly affected markets. That time has passed. Today, sustainability is a key component of how organizations communicate performance, strategy and long-term resilience. This change is the result of structural, rather than cosmetic forces. Resource scarcity, social fairness, supply chain transparency, and climate change are now line items on the risk register rather than advocacy talking points. Institutional investors now consider a company's management of environmental exposure, human capital, and governance quality in addition to its earnings, as these criteria are increasingly predictive of whether companies will survive the next ten years.