In issuing The Amsterdam Declaration on Transparency and Reporting earlier in March, The Board of the Global Reporting Initiative have for the first time called on governments to introduce policies requiring companies to address publicly environmental, social and governance (ESG) factors.
The declaration states that the root causes of the current economic crisis would have been moderated by a global transparency and accountability system based on the exercise of due diligence and the public reporting of ESG performance. It calls on governments to take leadership in rebuilding a revitalized and resilient economic system through:
- Introducing policy requiring companies to report on ESG factors or publicly explain why they have not done so.
- Requiring ESG reporting by their public bodies – in particular: state owned companies, government pension funds and public investment agencies.
- Integrating sustainability reporting within the emerging global financial regulatory framework being developed by leaders of the G20.
Previous inter-governmental meetings have acknowledged the need for disclosure on corporate sustainability performance – in 2007 The G8, meeting in Heiligendamm, Germany, formally encouraged GRI reporting as a means to yield good governance and transparency and thereby achieve poverty reduction, conflict prevention, support sustainable investment decisions, and promote development in emerging economies.
GRI is currently calling on our global leaders to take note of the evidence of momentous and costly environmental and social risks and act now at the G20 summit in London. Our political leaders must seize this historic opportunity and set in place policies that will ensure general transparency in the markets and in our society regarding our companies’ and organizations’ impacts on pressing global issues including climate change, severe poverty, water usage, and energy security.
Read the full Amsterdam Declaration on Transparency and Reporting.