performance

KPMG India has released its report titled ‘Accelerating the change: ESG reporting 2.0’. The company relaises that the global reporting landscape globally is transcending towards standardization of ESG disclosures. In India, the SEBI mandated Business Responsibility and Sustainability Report is a step forward in this direction.

Talking about the report Shivananda Shetty, Partner & Head – ESG, KPMG in India says, “Leading Indian companies have actively started disclosing their ESG performance as it helps them to showcase their commitment towards the overall sustainability agenda to their stakeholders. The stakeholders are expecting relevant and accurate data and it is imperative for the companies to treat the ESG disclosure with the attention and care like a financial disclosure and ensure governance around data measurement, analysis and reporting. The ESG disclosure will also help organizations to compare their own performance against the peers and will help to raise the bar for the companies.’

 Key highlights of the report:

• Currently, 79% of the N100 Companies publish a standalone ESG report in the form of a Sustainability Report, Integrated Report or Annual Integrated Report.
• 45% of the N100 Companies have adopted an Integrated Report.
• 54% of the companies have opted for third-party assurance, out of which, 89% opt for Limited Level of assurance and 76% use the ISAE3000 assurance standards.
• 56% of the N100 Companies include ESG parameters under the purview of their Board level committee.
• 81% of the N100 Companies have identified top ESG focus areas using a comprehensive materiality assessment.
• 69% of the N100 Companies have established targets linked to environment parameters such as waste, water, and energy management.
• 65% of the N100 Companies have now established targets linked to social parameters such as diversity, inclusion, employee well-being and development.
• 53% of the N100 Companies report on their carbon reduction targets, out of which, 36% report on carbon intensity targets and 64% report on absolute carbon targets.

 “In the backdrop of rising social inequalities, mounting economic challenges, global climate crisis, and unprecedented pandemic, the performance of companies on Environment, Social, and Governance (ESG) is emerging as a critical evaluation parameter.  As ESG is becoming mainstream, this thought Leadership aims to highlight the current reporting landscape with insights into the uptake of various sustainability targets and reporting frameworks across the top 100 companies in India.” says Prathmesh Raichura, Partner, ESG, KPMG in India.

 Prathmesh further adds, ‘The ESG value proposition is here to stay, with a surge in the demand for quality and consistent ESG disclosures. Companies that align their reporting practices to rising stakeholder sentiment have a clear advantage in winning their trust and establishing themselves as an organization with foresight. KPMG’s thought leadership explores the current uptake of sustainability reporting frameworks for the N100 companies, with insights for corporates to strengthen reporting practices by transitioning to an outcome-oriented approach.’

 The way forward:

• Enhance robust governance levers to drive organization wide ESG excellence
• Prioritize key stakeholder insights and drive stakeholder feedback across ESG disclosures and performance
• Ensure organizational readiness for mandatory ESG disclosures
• Enable preparedness for global harmonized ESG reporting standards and frameworks
• Encourage proactiveness towards voluntary ESG disclosures and initiatives
• Drive momentum to increase the uptake of climate disclosures and action