The metrics were developed with Deloitte, EY, KPMG and PwC in an open consultation process with corporates, investors, standard-setters, NGOs and international organisations.
The WEF (World Economic Forum) has released a set of universal ESG metrics and disclosures to measure stakeholder capitalism that companies – regardless of their industry or region – can use for reporting.
The metrics and disclosures are organised around four pillars of principles: governance, planet, people and prosperity, and align existing standards to enable companies to collectively report non-financial disclosures.
The new metrics were announced at the fourth annual Sustainable Development Impact Summit, which coincided with Climate Week in New York, and delivers on a commitment from the WEF Annual Meeting 2020 in January.
Since then, 120 members of the WEF’s International Business Council have shown strong support for ESG metrics, with some companies expected to begin incorporating them into their reporting immediately, the WEF said.
The stakeholder capitalism metrics and disclosures were developed in collaboration with Deloitte, EY, KPMG and PwC, reflecting an open consultation process with corporates, investors, standard-setters, NGOs and international organisations.
They are designed to provide a common set of existing disclosures that can lead towards a coherent and comprehensive global corporate reporting system.
In parallel to this work, the WEF has also collaborated on an initiative to bring together the efforts of the five leading independent global framework and standard-setters (CDP, CDSB, GRI, IIRC and SASB) to work towards a comprehensive corporate reporting system and a statement of intent, which works as a complement to the new common metrics.
“Companies have to deliver great returns for shareholders and address important societal priorities,” said Bank of America chairman and CEO Brian Moynihan. “These metrics will provide clarity to investors and other stakeholders and ensure capital is aligning to drive progress on the SDGs. That’s stakeholder capitalism in action.”
Companies are encouraged to report on the full set of metrics in their mainstream reporting.
The metrics and disclosures are explained in a new report, available here.