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.”

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:

  • 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
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