ESG data management and reporting are the CFO’s responsibility

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: A global survey by Protiviti shows that CFOs and finance leaders are prioritizing ESG (Environmental, Social, and Governance) metrics and measurement
• They see a significant increase in their role in ESG reporting, underscoring the shift in responsibility towards finance departments.

🔭 The context: The survey reflects a broader trend where ESG reporting is moving from a voluntary to a compulsory and auditable standard
• Finance teams are now expected to apply their expertise in internal controls, data management, and risk management to ESG reporting, marking a shift from scattered and uncoordinated efforts to more standardized and reliable processes

🌍 Why it matters for the planet: Accurate and trustworthy ESG reporting is crucial for understanding and mitigating the environmental and social impacts of businesses. Enhanced ESG data management led by CFOs can lead to more responsible corporate practices and better sustainability outcomes globally.

⏭️ What's next: The trend indicates a move towards more rigorous and auditable ESG standards, potentially impacting corporate strategies and operations
• CFOs and finance teams are expected to enhance their ESG reporting capabilities, integrating them into enterprise risk management and identifying operational improvements.

💬 One quote: "The good news is that most, if not all, of the disciplines the CFO needs to develop effective and compliant ESG reporting already reside in the organization." - Forbes

📈 One stat: Nearly 70% of finance organizations indicated a substantial increase in the focus and frequency of their reporting related to ESG issues.

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