Purpose-driven disclosure (PDD)

Investors use corporate reports to assess a company’s performance and prospects. When preparing their reports, companies use a multitude of approaches to determine the scope and type of ESG information they will disclose through different channels – such as legal filings and sustainability reports. But these various practices and complexities, can lead to difficulties getting “decision useful” information about ESG risks and opportunities into the hands of investors. This project seeks to address the issue by strengthening processes for assessing materiality/relevance that respond to the needs of investors. 

The purpose-driven disclosure project will identify and develop corporate disclosure practices that:

• support decision-making and action on ESG matters by companies, investors and other financial market participants;
• align corporate disclosure on ESG matters with the demands and needs of financial market participants;
• reflect true economic impact, including the impact of ESG on financial performance in line with WBCSD’s Vision 2050.

The purpose-driven disclosure project will support the development and promote a shared understanding of materiality processes in ESG decision-making and reporting, with two specific outcomes:

• Guidance on applying materiality and judgement to provide decision-useful information when making ESG disclosures.
• A Library of ESG indicators for measuring, monitoring and communicating ESG performance published on the Reporting Exchange platform.

Contact us to get involved.