Is ESG reporting ready to save the world?

ESG reporting is a mainstream topic among corporations. Standard-setters around the world seem to be trapped into the assumption that ESG reporting not only increases transparency, but also evokes more sustainable behavior. However, research shows that we lack understanding how ESG reporting can lead to real positive impact.

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Sustainability reporting: what you measure might not be what you get

As sustainability reporting has moved from an exception to an expectation, the measurement of sustainability information has become increasingly dominant. While measurement has helped sustainability reporting’s development and strategic relevance, we signal to managers and policy makers that it risks narrowing what is considered valuable and that it can crowd out moral questions.

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