XBRL News about pay vs performance and ESG data standards

Here are the most relevant developments in the world of structured reporting we became aware of in the course of last week.

1  SEC adopts inline XBRL for Pay vs Performance disclosures

2  Improving ESG data production for better company decision-making

An interesting new report from the UK Financial Reporting Council’s FRC Lab addresses how companies can collect and use environmental, social and governance (ESG) data to support better decision-making. It offers a number of recommendations and questions for boards to consider relating to three elements of ESG data production: motivation, method and meaning. 

We are still a long way from having ESG data comparable in quality to financial data. That needs to change in order to make it decision useful, both for companies and investors. 

3  Voices raised for alignment on ESG

As global, EU and US consultations on sustainability reporting drew to a close over recent weeks (as discussed here), we have seen a concerted push for collaboration and convergence from a huge range of organisations.

While there are some justified material differences, it is up for discussion whether we can afford multiple standards on ESG disclosures, especially if they are at risk of diverging. 

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Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.

 We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

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