In the next one year, Mahindra sees a large number of companies committing themselves to the metrics. According to him, businesses across the world are already realising that it’s no longer just about “ticking the box but about being alive.” Therefore, commitment to a sustainable business will become inevitable.
Klaus Schwab, Founder and Executive Chairman, World Economic Forum, said, “Stakeholder capitalism becomes now really mainstream. Public commitments from companies to report not only on financial matters but also their ESG
(Environmental, Social and Governance) impacts are an important step towards a global economy that works for progress, people and the planet.”
"This is the beginning of a long journey and we look forward to more global businesses joining us in this effort to strengthen our collective action," said Emily Bayley, Project Lead, ESG
By signing on to these metrics, CEOs commit to reflect the core metrics in their reporting to investors and other stakeholders (e.g. annual report, sustainability report, proxy statements, or other materials), by reporting on the metrics most relevant to their business or briefly explaining why a different approach is more appropriate.
They have also agreed to publicly support this work and encourage their business partners to do so in addition to promoting the further convergence of existing ESG
standards, frameworks and principles to support progress towards a globally accepted solution for non-financial reporting on common ESG
“This (Stakeholder Capitalism Metrics) will be one of the fastest ways to accelerate the systemic change the world needs, putting investors on the right track, helping to change consumer behavior for the better, and helping companies to do the right thing,” said Geraldine Matchett, Co-CEO and Chief Financial Officer and Member of the Managing Board, Royal DSM.
In August 2019, the WEF in collaboration with Deloitte, EY, KPMG and PwC commenced a project to identify a set of universal metrics and disclosures called Stakeholder Capitalism Metrics. It was deliberately drawn from existing standards, focused on the four themes of principles of governance, planet, people and prosperity.
Subsequently, in September 2020, following a six-month consultation process with over 200 companies, investors and interested parties, the project published a refined set of 21 core and 34 expanded metrics and disclosures in its report Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation.
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