Most relationships function on the exchange of information. Banks, investors, employees and customers all take decisions concerning business – and each other – based on their knowledge of the other party. Providing that data in a meaningful form, of course, is important. Just as past crises led to a revolution in which that information is shared, so the pressures around environmental, social and governance (ESG) factors are creating new ways to present a broader, more impactful view of companies.
Ronald Cohen, chairman of the Global Steering Group for Impact Investment (GSG), notes how the US passed legislation to mandate the use of Generally Accepted Accounting Principles after the 1929 stock market crash and the Great Depression. He says that the uncertainties raised by the coronavirus pandemic have further highlighted the need for a better understanding of corporates’ role in society.
