WEF gives firms new metrics for sustainable development

By Aysu Bicer

ANKARA (AA) - The World Economic Forum (WEF) on Tuesday released a set of environmental, social and governance (ESG) metrics and disclosures for companies to report on regardless of their industry or region.

Announced at the fourth annual Sustainable Development Impact Summit, the ESG metrics purportedly aim to accelerate and scale up entrepreneurial solutions to climate change and advance sustainable development.

A total of 120 members of the forum's International Business Council have shown support for the scheme that can be included in mainstream corporate disclosures, according to a statement by the WEF.

"Companies see the importance of social, climate and other non-financial factors as critical for their long-term viability and success," it noted.

The statement cited social, economic and racial unrest exacerbated by the coronavirus pandemic as having accelerated demands from businesses and governments for comprehensive and globally accepted corporate reporting systems.

It said the metrics and disclosures were in line with existing standards enabling companies to collectively report non-financial disclosures and included social, economic, environmental and governmental indicators.

"Some 86% of executives surveyed by the forum agreed that reporting on a set of universal ESG disclosures is important and would be useful for financial markets and the economy," it showed.