Reporting Trends: Regional Differences Become Amplified
Sustainability is now a global concern, but the approach and reporting requirements differ from country to country. So it’s important to understand the differences, and address regional needs and norms in reports. For example:
Asia-Pacific – In this region, climate change discussions in major commercial hubs now include topics such as adaptation and resilience, not just mitigation. Taking a broader view requires policy responses — and sustainability actions — that address everything from infrastructure reliability to supply chain disruptions to food security. One consequence: It is likely that companies listed on the Hong Kong Stock Exchange will have to include “comply or explain” codes of practice in ESG reporting at the start of 2016.
Europe – Meeting mandates continues to be the focus across Europe. With EED regulations at the European Union (EU) level, along with country-level policy like the GHG reporting rule in the U.K. and the Grenelle Act in France, corporations will devote their attention to these requirements.
North America – Investors and consumers are demanding greater transparency in the U.S. While regulations are beginning to take shape, the vast majority of reporting still comes from companies looking to generate trust and goodwill with their customers, shareholders and employees.
Challenge: Multinational companies need to understand the drivers and obligations in each market and refine their sustainability and reporting efforts accordingly. At the same time, these businesses must determine how to communicate these actions to consumers who increasingly expect organizations to demonstrate global corporate responsibility.
Solution: Ensure you have people on your team who understand what is driving the demand for global transparency or reach out to experts that can help. Consider working with a trusted partner that offers a global perspective to help guide your strategy — and makes you a sustainability leader.
Download “6 for 2016: Sustainability Reporting Megatrends” to stay up to date.
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