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If climate change, water shortages, diversity and inclusion and labour relations are all financially material, even though they are non-financial, shouldn’t they be part of any financial presentation?
If they affect a corporation’s value and success, as, by now, even the SEC recognises, then they should be being discussed at every investor facing presentation. If that is the case, should they be siloed off into ESG-only investor calls?
In the same way, if these issues are financially material, why are they siloed off into sustainability reports rather than being presented in annual financial statements? Oh, wait, in every other country except the US they are. And that IS the SEC’s fault.
Let’s look at the rise of ESG mentions in earnings calls. As a matter of fact, in an anomalous finding, Factset found a 56% decrease …