Sustainability disclosure is a cross-cutting engagement theme, as consistent, reliable, and verifiable reporting is essential across all environmental, social, and governance topics.
Storebrand believes that all companies should report on both standardised and company-specific sustainability metrics. This benefits all stakeholders by increasing transparency. The quality of oversight and reporting on ESG issues is also a strong indicator of how well a company measures and manages its sustainability risks, an aspect that is crucial for us as investors.
It is in everyone’s interest that companies disclose how sustainability issues affect their business and how their operations and products impact people and the environment. However, differing standards and regulatory requirements currently result in inconsistent and non-comparable information, making it difficult for investors to fully assess portfolio companies’ exposure to sustainability risks. To direct capital toward the most sustainable companies, disclosures must be comparable, comprehensive, and verifiable.
The reporting landscape is evolving rapidly. Increased corporate reporting will improve the flow of sustainability information to investors and other stakeholders, enabling more consistent and reliable assessments of companies’ sustainability performance. While EU-based companies will be required to meet more streamlined disclosure standards, we will expect the same level of transparency from publicly listed companies globally.
We will continue to encourage companies to enhance their disclosures in line with TCFD and TNFD recommendations, as well as emerging requirements under CSRD and CSDDD. We will also encourage improved reporting on Principal Adverse Impact (PAI) indicators, enabling us to better identify leaders and laggards and to fulfil our commitments under the EU Sustainable Finance Disclosure Regulation (SFDR).