Everyone has seemed to jump on ESG bandwagon by now and every company want to invest in ESG reporting to attract customers but the main question that haunts us is which standard to follow? Which metrics should be used to analyze and evaluate a firm’s ESG index .With a plethora of options for sustainability standards, frameworks and organizations, a chaos has been created.
There is a soup of ESG alphabets , with ever-increasing terms with no clear definitions. On top of it greenwashing whether intentional or unintentional is troublesome.
However, creation of ISSB (International Sustainability Standards Board) might solve some of these issues, as it will provide a global baseline for sustainability reporting.
To know more please refer to this interesting article.
https://hbr.org/2022/02/we-need-universal-esg-accounting-standards
