ESG Data - New Framework for KPIs

Monday, 26 April 2010
By Susan Drury

The European Federation of Financial Analysts Societies (EFFAS) has published for public comment, an exposure draft of key performance indicators (KPIs) for ESG 3.0, the reporting framework for corporate reporting of ESG data and integration into investment analysis.

Developed by DVFA German Society of Investment Professionals in collaboration with EFFAS Commission on ESG, the framework addresses deficiencies in current corporate ESG disclosure by proposing to reporting entitities that they:

  • Report EFFAS KPIs and not only in sustainability or CSR reports but to integrate them into quarterly/annual reports, websites, management accounts and analyst presentations for example; and
  • Provide contexts, explanations and account as to the relation between ESG and financial performance data to enable investment professionals to understand corporate risk and opportunity profile functions.

"Corporates need guidance as to which aspects and in which format investment professionals require ESG data to enable them to a better company valuation. Until recently, ESG was predominately understood as reflecting corporate risk. Our analysis shows that corporates need to understand which opportunities arise from good management of environmental, social and governance aspects. KPIs for ESG 3.0 reflect both risks and opportunities," said Giampaolo Trasi, Chairman of EFFAS introducing the draft.

EFFAS and its ESG working group will undertake further outreach during the comment period to ensure the views of interested parties are taken into account. The exposure draft KPIs for ESG is open for comment until 30 June 2010 and can be accessed via

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