Why Sustainability Reporting Matters to Investment Decisions
Author: Nicholas C. Lynch.; Michael F. Lynch.
Source: Volume 40, Number 01, Fall 2022 , pp.55-73(19)
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Abstract:
Public pressure from stakeholders has led to an increasing demand for nonfinancial information to assist investors in making financial decisions. It is no longer possible to judge a company’s performance by looking solely at financial data. As a result, companies’ sustainability policies and metrics, including corporate social responsibility (CSR) reports and environmental, social, and governance (ESG) programs, are now important factors to be considered in the decision-making process. Standard-setters have taken notice and are adopting new laws and regulations that are integrating the disclosure of financial and nonfinancial data in both the U.S. and abroad, ushering in a period of change in corporate reporting. Investors and other firm stakeholders should be made aware of the increasing role that a sustainable business model plays in driving firm value and what the future holds for sustainability reporting.Keywords: sustainability, triple bottom line, corporate social responsibility, ESG, integrated reporting, Global Reporting Initiative
Affiliations:
1: California State University; 2: Bryant University.