Governmental and scientific news and insights on investor oriented environmental, social, and governance (ESG) data.

Bloomberg and the TCFD – final recommendations

“Increasing transparency makes markets more efficient, and economies more stable and resilient.” —Michael R. Bloomberg, Chair of the TCFD To help identify the information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities for the companies, the Financial Stability Board established an industry-led task force: the Task Force [...]

By | 2017-06-29T19:12:44+00:00 June 29th, 2017|ESG, Firm Value, Indicators, Integrated Reporting, Investors, Risk|0 Comments

EU Commission releases its Non-Financial Reporting guideline

Article 2 of the Directive refers to ‘guidance on reporting’ and sets out that ‘the Commission shall prepare non-binding guidelines on methodology for reporting non-financial information, including non-financial KPIs, general and sectoral, with a view to facilitating relevant, useful and comparable disclosure of non-financial information by undertakings. […]’ Recital 17 of the Directive states that, [...]

By | 2017-06-28T21:12:20+00:00 June 28th, 2017|CSR, ESG, Integrated Reporting|0 Comments

IFAC calls for integrated reporting

The International Federation of Accountants® (IFAC®) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC now calls for integrated reporting: “Leaders need to choose between two separate paths. In one direction lies renewed vigor for working [...]

By | 2017-06-28T21:10:27+00:00 June 28th, 2017|Assurance, Governance, Integrated Reporting|0 Comments

To Disclose or Not to Disclose Climate-Change Risk in Form 10-K – Materiality and Cost of Equity

We examine the relation between managers’ decisions whether to disclose climate-change risk (CCR) in Form 10-K and firm risk. Ambiguity about the materiality of CCR and the SEC’s inconsistent enforcement of CCR disclosures cause uncertainty about whether disclosing CCR is mandatory or voluntary. We hand-collect data over a seven-year period from about 3,000 Form 10-K [...]

By | 2017-06-28T21:07:50+00:00 June 28th, 2017|Environmental, Firm Value, Investors|0 Comments

Corporate Social Responsibility Ratings and Financial Performance: An Analysis of Sub-Ratings in Europe

The overall objective of the study is to deepen our investigation into the CSR sub-ratings by measuring their impact on accounting and stock market performance by first using a “Prospective” approach in which the subsequent performance of the sample companies is predicted by their CSR sub-ratings in Vigeo. We then perform a “Retrospective” analysis which [...]

By | 2017-06-09T20:59:12+00:00 June 9th, 2017|CSR, ESG, Financial, Firm Value, Investors|0 Comments

Two Novel Indices of Climate-Related Financial Disclosure

Market-based solutions to climate change are widely advocated by financial actors and policy-makers in order to foster a smooth transition to a low-carbon economy. A first important limiting factor to this approach is widely recognized to be the imperfect information on investors portfolio exposure to climate related risks. While better disclosure of climate-relevant information is [...]

By | 2017-06-01T09:12:55+00:00 June 1st, 2017|Financial, Firm Value, Indicators, Investors, Risk|0 Comments