On Dec. 16, Basel Institute issued guidance on ESG reporting needs.
Basel Institute issued an overview Corporate disclosure on anti-corruption and ESG: three innovative approaches covering regulations and meeting reporting expectations.
ESG regulations
Regulatory focus is shifting from soft-law instruments to mandatory regulations for ESG topics, requiring companies to address anti-corruption compliance and related.
Synergies exist between environmental, social, and anti-corruption agendas, but many businesses struggle with siloed approached, limited coordination between functions.
Integrating ESG and anti-corruption compliance into risk management frameworks enhances governance while maintaining topic-specific focus, aligning business efforts.
Disclosure Requirement Recommendations
Basel Institute recommends three approaches to ESG-related reporting: effectiveness indicators, corporate culture, and engagement in anti-corruption Collective Action.
The Basel Institute, in collaboration with Norges Bank Investment Management (NBIM), developed anti-corruption effectiveness indicators applicable across industries.
Indicators align with NBIM’s anti-corruption expectations, emphasizing transparency in reporting and measurement, based on principles like the UN Global Compact, OECD.
Combine qualitative and quantitative metrics for comprehensive assessment of themes culture, risk management, third parties, compliance function, and oversight.
Corporate culture is critical for effective anti-corruption and ESG programs, requiring an intentional focus on building an ethical culture beyond check-box compliance.
Establish a baseline and methodology to track cultural changes over time, track ethics and compliance references by leadership, and add ethics in performance management
Collaborative approaches such as Collective Action are an impactful way for companies to address these challenges jointly and also meet expectations of their stakeholders.
Regulators
Basel Institute
Entity Types
Corp
Reference
PR, 12/16/2024; ESG
Functions
Anti-Bribery; Compliance; C-Suite; Environment; Reporting; Risk; Social
