Stockholm (NordSIP) – Nasdaq launched a new global ESG reporting guide for public and private companies. The new document updates Nasdaq’s original 2017 ESG guidance. ESG reporting, while recommended as good business practice remains optional for companies listed on Nasdaq exchanges.
“ESG data points have become essential tools, not only for investors seeking performance indicators, but also for companies trying to increase operational efficiency, decrease resource dependency, and attract a new generation of empowered workers,” said Nelson Griggs, President of the Nasdaq Stock Exchange. “Our global ESG Reporting Guide is intended to serve as a resource for today’s corporate leaders to create a world in which all market participants are able to share in economic opportunities.”
The updated ESG guidance aims to help companies navigate the evolving standards on ESG data disclosure, regardless of geography or market capitalization. Three key developments reportedly motivated Nasdaq to update its ESG reporting guide. First, it is a response to the rise of new reporting frameworks, including the Task Force on Climate-related Financial Disclosures (TCFD) and the UN’s Sustainable Development Goals. The second trigger for Nasdaq’s update was the update from the World Federation of Exchanges (WFE) which recognised a number of developments and clarification of best practices from its own previous 2015 guide. Lastly, Nasdaq’s revised ESG guide incorporates the results of Nasdaq’s own year-long ESG reporting pilot program. The new reporting guide allows listed companies to report 10 metrics for each of the ESG factors, for a total of 30 ESG metrics.
“Our expanded ESG Reporting Guide integrates the latest reporting standards and long-term-focused methodologies and aims to further encourage companies in addressing critical ESG matters, such as capital markets and investor strategy, talent acquisition and retention, and supply chain oversight and responsibility,” said Evan Harvey, Global Head of Sustainability, Nasdaq. “Our team remains fully committed to taking a leading role in facilitating ESG practices, disclosures, and dialogue between investors and companies.”
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