Standardizing ESG Reporting Is ‘Impractical,’ But Canada’s Public Pensions Want It: Think Tank

Standardizing ESG Reporting Is ‘Impractical,’ But Canada’s Public Pensions Want It: Think Tank
ESG stands for environmental, social, and governance. Deemerwha studio/Shutterstock
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Companies face pressure to adhere to standardized frameworks for environmental, social, and governance (ESG) reporting, similar to those for financial reporting to stakeholders.

But the subjective nature of ESG reporting makes it “impractical” and “extremely costly” for companies to do in a standardized way when compared to the more objective financial reporting, say experts at the Fraser Institute.