ESG Transparency
Definition
ESG Transparency is the observance of disclosures, information rules and reporting practices as related to ESG Factors affecting an entity. The scope and requirements depend on the nature of the entity. [1]
Example
Under the Paris Agreement, countries must regularly report on the implementation of their Nationally Determined Contributions. It is crucial that this reporting is done with transparency to allow the global community to accurately assess collective progress and build trust that everyone is playing their part.
Transparent reporting allows governments and international bodies to have access to reliable data and make evidence-based decisions. It also enhances our scientific understanding of climate change and the actions and policies needed to mitigate it and adapt to its impacts. Ultimately, transparency is key to unlocking the full potential of the Paris Agreement, by promoting trust, collaboration and knowledge transfer and encouraging further ambition on climate targets.
