The ESG field is developing rapidly, which leads to headaches for investment organizations as they try to keep up. One area that many are grappling with right now is the question of reporting.

A special report in the latest edition of Investment and Pensions Europe looks at this question from a number of angles. My own contribution is on “Closing ESG reporting gaps”. Some of the key points:

• Meaningful ESG reporting is a more complex and ambiguous task than traditional performance reporting.
• Although there are many advantages to standardization, standards are harder to define in an environment that is complex or dynamic. The ESG field is both.
• The EU’s SFDR will be top of mind for most in the short term. But it’s not a good idea to leave your strategy to the whims of the regulators; you’ll end up bobbing along like a cork on the ocean.
• Well-crafted reporting can be a platform for stronger client engagement, helping to build deeper and broader relationships. That takes more than raw numbers. You also need a narrative that ties the numbers together.

Things are moving fast: data and tools are improving; norms are emerging. We’re definitely still in the early stages on this one, though. This will be work in progress for some time to come.

The full article is available here.