FRC outlines necessary action for effective ESG reporting
On 7 July 2021, the FRC published the FRC Statement of Intent on Environmental, Social and Governance challenges. The paper sets out areas in which there are issues with ESG information in companies are to report in a way that meets the demands of stakeholders, how to address some of those demands and the FRC’s planned activities in this area.
According the FRC, there is an ever-increasing amount of regulatory change and as these changes are implemented, there remain a range of underlying issues with the production, audit and assurance, distribution, consumption, supervision and regulation of ESG information. In the FRC’s view, we need better:
- Production – to ensure that better internal information leads to better decisions and better insight for stakeholders
- Audit and Assurance – so that the reported information is robust and reliable
- Distribution – so that information is made accessible to interested parties
- Consumption – to ensure this information leads to better decision making by stakeholders
- Supervision – so that information and activity is appropriately monitored and requirements are enforced
- Regulation – as coordinated and coherent regulation leads to efficiency
The FRC’s Statement of Intent can be accessed here.
Published 8 July, 2021