2019 Nasdaq Copenhagen, CFA Society Denmark & FSR – Danish Auditors: ESG key figures in the annual report
Through joint efforts Danish Finance Society/CFA Society Denmark, FSR – Danish Auditors and Nasdaq Copenhagen issued guidance on ESG key performance indicators in the annual report – with a bit of consultancy from Center for ESG Research.
Investors increasingly integrate ESG disclosures into their company analysis, but also face challenges, as the ESG data provided is often not standardized and comparable, data quality is poor and data can be difficult to find. Furthermore, positive and negative developments in data may not be commented and seen in context of the company’s financial performance. As a result, it can be challenging for management to rely on ESG information internally for decision-making, and such information may be of little value to the providers of financial capital.
In order to take ESG disclosures to the next level, a professionalization is needed.