You are an a CEO of a large public company. You have been paying close attention to the news that the SEC plans to introduce more requirements around sustainability reporting. Your company already produces a lengthy sustainability report. You are now thinking about how these new regulations could change the way you currently report on sustainability.
What, if any, are the current regulations around sustainability/ESG reporting. Are there any mandated disclosures, how do they currently affect the company?
What framework(s) does the company currently use when reporting on sustainability? Are they using any external auditors?
Does the company compensate you (the CEO) on ESG metrics? How does this affect your (the CEO’s) view on sustainability reporting?
Looking through the sustainability report of your company and a few of its competitors, what are the major challenges you see in the industry around sustainability? What are the main sustainability issues for the industry? How do you think mandated reporting affects your industry specifically?
What are the benefits of the current sustainability reporting regime? What are the costs? How might mandated disclosure changes these costs and benefits?
You should think of this essay as a position piece by the CEO, ultimately arguing for or against mandated sustainability disclosure. Remember, this does not have to reflect your personal views on the subject!