I attended a conference for Private Equity International last week and regulations and reporting were a hot topic. A number of countries and governments are already working towards regulating standards and guidance around ESG reporting.
Many of these initiatives focus on promoting integrated reporting, which is a process to help companies report financial and non-financial information in line with the triple bottom line of people. planet and profit.
Staying ahead of such regulatory developments is critical for any company that wishes to maintain a competitive edge in the market. Regulations are looking beyond simply verbal commitment to ESG, and any possibility of greenwashing could open the door for an audit.
The time is now to start building out the internal infrastructure necessary for your fund to properly measure and report on its impacts.