Adhering to disclosure requirements across multiple standards and jurisdictions poses challenges for institutions, including increased costs, market confusion, and the absence of emerging best practices.
Overcoming these challenges involves conducting dedicated assessments to identify and align with evolving taxonomies, particularly in multi-jurisdictional operations, and leveraging emerging standards such as the European taxonomy.
Effectively managing ESG risks requires defining responsibilities and accountability at the board and management levels, attracting relevant expertise, and setting timelines and budgets for reporting.
Incorporating ESG considerations into corporate functions and engaging stakeholders are vital steps, alongside preparing for assurances over sustainability reporting to ensure consistency, verification, and reliability.
