The recent EY survey concerning non-financial reporting on ESG - environmental, sustainability and governance suggests that there is a growing demand for this information and a desire for it to be provided in a systematic fashion. This is more than "feel good" reporting but a focus on issues that can have real risks. From regulation to stranded assets, ESG will spill-over to earnings and financial reporting.
This is going to require a more training and skills by analysts who have to incorporate this information in their analysis. It will also affect valuations as these issues will impact demand from institutional buyers. Firms will also have to allocate more money to standardize non-financial reporting and realize that they will be graded on these non-financial goals. The firms of tomorrow will have different accountability to those of yesterday.
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