As stakeholder demand for environmental, social and governance (ESG) metrics increases, public, private and middle market companies are feeling the pressure. Due to rising regulatory requirements, it’s not uncommon for vendors to request ESG-related metrics and requests will only increase once the SEC releases its final climate disclosure rule.
While awaiting SEC guidance, it’s critical that organizations start preparing now. CFOs will be responsible for incorporating ESG and sustainability practices into their organization’s policies, procedures, financial reporting and decision-making processes. They can begin by developing a sustainable governance infrastructure to identify, report and monitor ESG-related risks and opportunities.
Governance is essential for the long-term success and sustainability of an organization. Baker Tilly’s risk advisory partner Mallory Thomas discusses the key aspects of governance that organizations and their CFOs should consider in this CFO.com article.