ESG
& Non-Financial Reporting
-
What Is a Segment?
-
Why Segment Reporting Matters
-
Required by Accounting Standards
ESG
& Non-Financial Reporting
ESG reporting stands for Environmental, Social, and Governance reporting.
It focuses on non-financial information that reflects a company’s impact on the
world, people, and how ethically it operates. ESG and other non-financial
reports go beyond profit—they measure sustainability, diversity, and
integrity.
“Financial numbers tell you how a business performs—ESG shows how it behaves.”
“Financial numbers tell you how a business performs—ESG shows how it behaves.”
What Is a Segment?
An ESG report may include a variety
of non-financial data that reflects how a business operates beyond profits. Environmental
data might cover carbon emissions, energy consumption, and efforts to
reduce waste. Social data often highlights employee diversity, working
conditions, and community involvement. Governance data focuses on
aspects like board structure, anti-corruption policies, and overall
transparency. These factors are becoming increasingly important to investors,
customers, and regulators, who want to know not just what a business
earns, but how it earns it—with integrity, responsibility, and
sustainability.
2. Why Segment Reporting Matters
Non-financial performance can
strongly affect a company’s reputation, risk profile, and long-term value.
For example, a company with poor environmental practices may face legal trouble
or customer backlash. On the flip side, businesses that focus on sustainability
often attract more investors and loyal customers.
3. Required by Accounting Standards
Several
global frameworks guide ESG reporting, including:
Though not always mandatory, these standards help businesses report their ESG efforts in a consistent and meaningful way.
- GRI (Global Reporting Initiative)
- SASB (Sustainability Accounting Standards Board)
- TCFD (Task Force on Climate-Related Financial Disclosures)
Though not always mandatory, these standards help businesses report their ESG efforts in a consistent and meaningful way.
Key Takeaways
✅ ESG stands for Environmental, Social, and Governance
reporting
✅ It measures a company’s sustainability, ethics, and social impact
✅ ESG reporting supports investor confidence and brand trust
✅ Popular frameworks include GRI, SASB, and TCFD
✅ It’s becoming a key part of advanced reporting for responsible businesses
✅ It measures a company’s sustainability, ethics, and social impact
✅ ESG reporting supports investor confidence and brand trust
✅ Popular frameworks include GRI, SASB, and TCFD
✅ It’s becoming a key part of advanced reporting for responsible businesses
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