Practical Guidelines Issued by Deutsche Borse for Capital Market Reporting
Today, investors and analysts progressively ask for corresponding information. An important part of a company’s value is non-financial aspects. Assistance has been designed by deutsche Borse to guide issuers of all sizes and sectors in integrating environmental, social and governance information into effective capital market communication.
The guide highlights the seven best practice recommendations with separate chapters. It also describes foundation for corporate sustainability. Here are those seven recommendations:
· Picture the top-down approach
· Stakeholder requirements should be considered.
· Clear information of material should be provided
· Focus on “risk and return” approach.
· Quantitative data should be preferred
· Refer with international/national standards
· Pay attention towards presentational issues.
A practical guidance has been provided by all chapters for the implementation of the recommendations and associates best practice in corporate sustainability disclosure. This disclosure has been clearly identified by national and international. It has also been promoted by mainstream and sustainability –oriented investors.
Now what is the challenge? Deutsche Borse defined the challenge as following:
· The most important task is to identify the indicators for small number of key performance. These indicators should be relevant for management and evaluation purposes.
· To provide relevant context, to illustrate interdependencies between financial data and ESG information along with the financial reporting and to present the indicators by using quantitative metrics.
· And to neglect the information which is not material (that may confuse investors and analysts)
This guide offers an overview of existing national and international standards. The purpose of this guide is not to replace the existing standards. The guide includes appendix along with the information about relevant organizations such as GRI, IIRC and United Nations Compact.