Corporate sustainability reporting, goals and challenges
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Date
2024
Authors
Journal Title
Journal ISSN
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
Corporate sustainability financial reporting focuses on integrating environmental, social, and governance
(ESG) factors into financial disclosures. Here’s a summary of its goals and challenges:
Goals:
Transparency: Improve the clarity and accessibility of sustainability-related information for stakeholders,
including investors, customers, and regulators.
Accountability: Hold companies accountable for their sustainability commitments and performance,
fostering trust among stakeholders.
Decision-Making: Provide relevant data to help investors and management make informed decisions regarding
sustainability risks and opportunities.
Challenges:
Data Collection and Quality: Difficulty in gathering accurate and comprehensive data on sustainability
metrics, often due to lack of systems or standard definitions.
Regulatory Complexity: Navigating a patchwork of evolving regulations and reporting requirements across
different jurisdictions.
Integration with Financial Reporting: Integrating ESG data with traditional financial metrics in a meaningful
way remains complex and often inconsistent.
Stakeholder Expectations: Balancing diverse stakeholder demands and expectations regarding sustainability
reporting, which can vary widely.
Resource Constraints: Limited resources (financial, human, technological) for companies, especially
smaller ones, to invest in robust sustainability reporting practices.
Overall, while the goals of corporate sustainability financial reporting are geared towards enhancing
transparency and accountability, the challenges often stem from data limitations, regulatory landscapes,
and the need for integration with traditional financial metrics.
Description
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the TCFD.
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Business Strategy & Development, 7(3):e398. https://doi.org/10.1002/bsd2.398
Keywords
Citation
IX International Scientific Conference: "Challenges of Globalization in Economics and Business", Proceedings , Tbilisi, 2024, pp. 198-203