We are highlighting three crucial trends below.
👉 An increasing need for transparency. Artificial intelligence, blockchain, and virtual reality are creating unprecedented levels of transparency, allowing investors and other stakeholders to view ESG data beyond publicly reported estimates.
👉 Activities of crucial influencers like the media, public figures, or NGOs. The public and large funders are increasing their support for these groups. For example, the European Climate Foundation is financing several environmental NGOs and initiatives and contributing to the financial support of foundations.
👉 Societal expectations are changing. For example, consumer demand for sustainable products and services is rising, policymakers are increasingly ready to take action, and employees are more willing to criticize their employers’ climate policies.
As can be seen, investors, customers, and other stakeholders are demanding greater transparency and disclosure of climate change risks.
The need for businesses to disclose climate risks is urgent as it drives them to adopt sustainability measures that will help address climate change.
Creating transparency and disclosure is not only mandated by international regulations, but it´s also an essential ingredient for corporate value in the financial markets. In a digital world, this transparency requires the selection and operation of optimized tools to support companies in this – in a process- and cost-efficient manner.